[Federal Register Volume 69, Number 97 (Wednesday, May 19, 2004)]
[Notices]
[Pages 28907-28919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11238]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families


Funding Opportunity: The Community Services Block Grant Program 
Community Economic Development Discretionary Grant Program--Priority 
Area: Incremental Development Projects

AGENCY: Administration for Children and Families, Office of Community 
Services.
    Announcement Type: Initial.
    Funding Opportunity Number: HHS-2004-ACF-OCS-ID-0022.
    CFDA Number: 93.570.
    Due Date for Applications: The due date for applications is July 
19, 2004.

I. Funding Opportunity Description

    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 of the U.S. Department of Health and Human Services 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 
development opportunities. Pursuant to this Announcement, OCS will 
award incremental development project funds to eligible Community 
Development Corporations (CDCs) that do not have in place written 
commitments for all projected non-OCS funding, project operations and 
site control for their

[[Page 28908]]

planned economic development project. Low-income beneficiaries of such 
projects include those who are determined to be living in poverty as 
determined by the HHS Guidelines on Poverty (See Appendix A). They may 
be unemployed, on public assistance, including Temporary Assistance for 
Needy Families (TANF), are at risk teenagers, custodial and non-
custodial parents, public housing residents, persons with disabilities 
and persons who are homeless.

Definitions of Terms

    The following definitions apply:
    Beneficiaries--Low-income individuals (as defined in the most 
recent annual revision of the Poverty Income Guidelines published by 
the U.S. Department of Health and Human Services) who receive direct 
benefits and low-income communities that receive direct benefits.
    Budget Period--The time interval into which a grant period is 
divided for budgetary and funding purposes.
    Business Start-up Period--Time interval within which the grantee 
completes preliminary project tasks. These tasks include but are not 
limited to assembling key staff, executing contracts, administering 
lease out or build-out of space for occupancy, purchasing plant and 
equipment and other similar activities. The Business Start-Up Period 
typically takes three to six months from the time OCS awards the grant 
or cooperative agreement.
    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, including religious 
leaders, which has as a principal purpose planning, developing, or 
managing low-income housing or community development activities. A CDC 
may be faith-based.
    Community Economic Development (CED)--A process by which a 
community uses resources to attract capital and increase physical, 
commercial, and business development, as well as job opportunities for 
its residents.
    Construction projects--Projects that involve land improvements and 
development or major renovation of (new or existing) facilities and 
buildings, fixtures, and permanent attachments.
    Cooperative Agreement--An award instrument of financial assistance 
when substantial involvement is anticipated between the awarding 
office, (the Federal government) and the recipient during performance 
of the contemplated project.
    Developmental/Research Phase--The time interval during the Project 
Period that precedes the Operational Phase. Grantees accomplish 
preliminary activities during this phase including establishing third 
party agreements, mobilizing monetary funds and other resources, 
assembling, rezoning, and leasing of properties, conducting 
architectural and engineering studies, constructing facilities, etc.
    Displaced worker--An individual in the labor market who has been 
unemployed for six months or longer.
    Distressed community--A geographic urban neighborhood or rural 
community of high unemployment and pervasive poverty.
    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 Zone and Enterprise Community Project Areas (EZ/EC)--
Urban neighborhoods and rural areas designated as such by the 
Secretaries of Housing and Urban Development and Agriculture.
    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 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 a theory. It should 
assert a cause-and-effect relationship between a program intervention 
and its expected result. Both the intervention and its result must be 
measured in order to confirm the hypothesis. The following is a 
hypothesis: ``Eighty hours of classroom training 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 is an intervention.
    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 contingent only on OCS accepting the applicant's 
project proposal.
    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.
    Non-profit Organization--An organization, including faith-based and 
community-based, that provides proof of non-profit status described in 
the ``Additional Information on Eligibility'' section of this 
announcement.
    Operational Phase--The time interval during the Project Period when 
businesses, commercial development or other activities are in 
operation, and employment, business development assistance, and so 
forth are provided.
    Outcome evaluation--An assessment of project results as measured by 
collected data that 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 being replicated. 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. 
The guideline information is posted on the Internet at the following 
address: http://www.hhs.aspe.gov/poverty/.
    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 the questions such as: Who 
is receiving what services and are the services being delivered as 
planned? It is also known

[[Page 28909]]

as 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 the Project Period 
when 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 employment status of an individual who engages 
in self-directed economic activities.
    Self-sufficiency--The economic status of a person who does not 
require public assistance to provide for his/her needs and that of his/
her immediate family.
    Sub-award--An award of financial assistance in the form of money, 
or property, 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 
Part 74. (Note: Equity investments and loan transactions are not sub-
awards.)
    Technical assistance--A problem-solving event generally using 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 immediate resolution of a 
given problem or set of problems.
    Temporary Assistance for Needy Families (TANF)--The Federal block 
grant program authorized in Title I of the Personal Responsibility and 
Work Opportunity Reconciliation Act of 1996 (Public Law 104-193). The 
TANF program transformed ``welfare'' into a system that requires work 
in exchange for time-limited assistance.
    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--Non-cash contributions provided 
by non-Federal third parties. These contributions may be in the form of 
real property, equipment, supplies and other expendable property, and 
the value of goods and services directly benefiting and especially 
identifiable to the project or program.
Project Goals
    Community Economic Development (CED) projects should further HHS 
goals of strengthening American families and promoting their self-
sufficiency, and OCS goals of promoting healthy families in healthy 
communities. The CED Program is particularly directed toward public-
private partnerships that develop employment and business opportunities 
for low-income people and revitalize distressed communities.
Project Scope
    Projects may include business startups, business expansions, 
development of new products and services, and other newly-undertaken 
physical and commercial activities. Projects must result in the 
creation of new jobs. Each applicant must describe the project scope 
including the low-income community to be served, business activities to 
be undertaken and the types of jobs to be created.

Community Economic Development Program

Priority Area: Incremental Development Projects (IDP)
    Pursuant to this Program Announcement, OCS will award funds to 
eligible CDCs that do not have in place written commitments for all 
projected non-OCS funding, project operations and site control for 
their planned economic development project.
    Community Economic Development Program funds for Priority Area: 
Incremental Development Projects are designed to encourage rural and 
urban community development corporations to create projects intended to 
provide employment and business development opportunities for low-
income people through business or commercial development. Low income 
beneficiaries of such projects include those who are determined to be 
living in poverty as determined by the Health and Human Services (HHS) 
Guidelines of Poverty (See Appendix A). They may be unemployed, on 
public assistance, including Temporary Assistance for Needy Families 
(TANF), or at risk teenagers, custodial and non-custodial parents, 
public housing residents, persons with disabilities and persons who are 
homeless. Grant funds under this priority area are intended to provide 
resources to eligible applicants (CDCs) but also have the broader 
objectives of arresting tendencies toward dependency, chronic 
unemployment, and community deterioration in urban and rural areas.
    An eligible applicant must submit a business plan that shows the 
economic feasibility of the venture.
    An applicant for an IDP must have: (1) All written commitments need 
not be in place; (2) All non-OCS funding necessary to complete the 
project need not be in place; (3) Third party agreements need not be in 
place (if applicable); and (4) Acquisition or site control need not be 
in place.
    OCS will support an IDP under a cooperative agreement. A 
cooperative agreement is an award instrument of financial assistance 
used when substantial involvement is anticipated between OCS and the 
grantee during performance of the project. OCS will outline a plan of 
interaction with the grantee for implementation under the cooperative 
agreement. A schedule of tasks will be developed and agreed upon in 
addition to any special conditions relating to the implementation of 
the project.
    The duties and responsibilities of the applicant and ACF/OCS in 
fulfilling the Cooperative Agreement during each phase will include the 
following:
    Responsibilities of the grantee:
     To implement activities described in the approved project 
description;
     Develop and implement work plans that will ensure that the 
services and activities included in the approved application address 
the goals and objectives of the approved project in an efficient, 
effective and timely manner;
     Submit regular semi-annual Financial Status (Standard Form 
269) and progress reports that describe activities including, at a 
minimum, (a) information about the actions taken to implement the 
proposed project, and (b) the proposed plan for outcomes measurement 
and program evaluation of the activities supported with Federal funds.
     Work cooperatively and collaboratively with ACF officials, 
other Federal agency officials conducting related activities, and other 
entities or organizations contracted by ACF to assist in carrying out 
the purposes of the

[[Page 28910]]

Community Economic Development Program; such cooperation and 
collaboration shall include, but not be limited to, providing requested 
financial and programmatic information, creating opportunities for 
interviews with agency officials and staff, and allowing on-site 
observation of activities supported under the cooperative agreement;
     Notify the Office of Community Services Project Officer if 
revisions are needed to the cooperative agreement;
     Consult with the Office of Community Services project 
officer in implementing the activities on an on-going and frequent 
basis during each phase of the project;
     Comply with Community Economic Development Program 
regulations (unless otherwise expressly waived in the approved 
application) and all other applicable Federal statutes and regulations 
in effect during the time that applicant is receiving grant funding;
     Notify the Federal Project Officer of any key personnel 
changes in writing;
     Ensure that the executive director and/or project 
director, and the evaluator 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; and
    Responsibilities of ACF/OCS:
     To provide consultation to the grantee with regard to the 
development of the work plan, approaches to address problems that 
arise, and identification of areas needing technical assistance;
     To consult with and to provide the grantee the data 
collection requirements of OCS, and to keep the grantee informed of 
policy developments as they affect the implementation of the project;
     To provide timely review, comment and decisions on 
significant project documents;
     To assist in resolving issues or problems with regard to 
the grantee's ability to carry out the full range of activities 
included in the approved application in the most efficient and 
effective manner;
     To promptly review written requests for approval of 
deviations from the project description or approved budget.
     To assist in evaluation of any proposed subcontractors who 
will perform substantive work under this project.
    An applicant requesting funding for an IDP must request the total 
amount of CED funding needed for the project on the SF424, Application 
for Federal Assistance. The maximum CED award for an IDP can be no more 
than $700,000 per project.
    Applications that are exclusively for construction may have project 
periods of up to five years with continuation funding every twelve 
months. First year funding will be awarded for up to 20% of the 
requested total amount, not to exceed $140,000. The application must 
also include an incremental budget based on the design of the project 
for the four remaining years, not to exceed the balance of the total 
requested funding. A minimum of 2% of the award, or a minimum of 
$14,000, must be set aside for each continuation year.
    Non-construction projects may have project periods of up to three 
years with continuation funding every twelve months. First year funding 
will be awarded for up to 20% of the total requested amount, not to 
exceed $140,000. The applicant must also include an incremental budget 
based on the design of the project for the two remaining years, not to 
exceed the balance of the total requested funding. A minimum of 2% of 
the award, or a minimum of $14,000, must be set aside for each 
continuation year.
    Funding beyond the first 20% is dependent on a grantee's 
documenting (1) site control, (2) all of the non-CED funding required 
to complete the project and (3) referral sources. In addition, 
continuing funding will be subject to the availability of funds, 
satisfactory progress by the grantee on the project and a determination 
that continuation is in the best interests of the Federal Government. 
The decision to continue funding the project is at the sole discretion 
of OCS.
    Applicants awarded a FY 2003 Incremental Development Project (IDP) 
grant cannot receive a second IDP grant until the first grant is 
significantly complete and has met most of its proposed goals and 
objectives. Particular attention will be paid to satisfying all job 
creation commitments.
    Applicants awarded a FY 2002 or FY 2003 Incremental Development 
Project (IDP) award cannot receive a second IDP award until the first 
project is complete and has met most of its proposed goals and 
objectives. Particular attention will be paid to satisfying all job 
creation commitments.
    Furthermore, applicants that have not completed a previously 
awarded IDP award are not eligible to receive another IDP award during 
the one year period following the end of the project period of the last 
IDP grant award.

II. Award Information

    Funding Instrument Type: Cooperative Agreements (See Section I 
above for a description of Federal involvement in the cooperative 
agreements).
    Anticipated total Priority Area Funding: $1,120,000 in FY2004.
    Anticipated Number of Awards: 8--10.
    Ceiling on Amount of Individual Awards: $700,000 per project.
    The first increment of an Incremental Development Project may not 
exceed $140,000. An application that exceeds the upper value of the 
dollar range specified will be considered ``non-responsive'' and be 
returned to the applicant without further review.
    Floor of Individual Award Amounts: None.
    Average projected Award Amount: $112,000 per initial budget period.

III. Eligibility Information

1. Eligible Applicants

    Nonprofits having a 501 (c) (3) status with the IRS, other than 
institutions of higher education. Nonprofits that do not have a 501 (c) 
(3) status with the IRS, other than institutions of higher education. 
Faith-based community development corporations are eligible to apply.
    An applicant must be a private, non-profit Community Development 
Corporation (CDC). For purposes of this grant program, the CDC must be 
governed by a Board of Directors consisting of residents of the 
community and business and civic leaders. The CDC must have as a 
principal purpose planning, developing, or managing low-income housing 
or community development activities.
    Additional Information on Eligibility:
    Applications that do not include proof of nonprofit status with 
their application will be disqualified.
    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) a reference to the applicant organization's listing in the 
Internal Revenue Service's (IRS) most recent list of tax-exempt 
organizations described in the IRS Code;
    (b) a copy of a currently valid IRS tax exemption certificate;

[[Page 28911]]

    (c) a statement from a State taxing body, State attorney general, 
or other appropriate State official certifying that the applicant 
organization has a non-profit status and that none of the net earnings 
accrue to any private shareholders or individuals;
    (d) a certified copy of the organization's certificate of 
incorporation or similar document that clearly establishes non-profit 
status;
    (e) or any of the items referenced above for a State or national 
parent organization and a statement signed by the parent organization 
that the applicant organization is a local non-profit affiliate.
    Private, non-profit organizations are encouraged to submit with 
their applications the survey located under ``Grant Related Documents 
and Forms'' titled ``Survey for Private, Non-Profit Grant Applicants'' 
at http://www.acf.hhs.gov/programs/ofs/forms.htm. Participation of lack 
of participation in the survey will not affect an applicant's score or 
otherwise affect ACF's funding decisions.
    Applicants that do not include proof of CDC status in the 
application will be disqualified.
    An applicant must be a private, non-profit Community Development 
Corporation. For purposes of this grant program, the CDC must be 
governed by a Board of Directors consisting of residents of the 
community and business and civic leaders. The CDC must have as a 
principal purpose, planning, developing, or managing low-income housing 
or community development projects.
    Applicants must document their eligibility as a CDC for the 
purposes of this grant program. The application must include a list of 
governing board members along with their designation as a community 
resident, or business or civic leader. In addition, the application 
must include documentation that the organization has as a primary 
purpose planning, developing or managing low income housing or 
community development activities. This documentation may include 
incorporation documents or other official documents that identify the 
organization.
    2. Cost Sharing or Matching: None.
    There is no cost sharing or matching requirement but most economic 
development projects require significant funding in addition to the 
federal CED funds so applicants are strongly encouraged to mobilize the 
resources needed for a successful project. The ability to mobilize 
resources is considered in evaluating the feasibility of a proposal.

3. Other

    On June 27, 2003, the Office of Management and Budget published in 
the Federal Register a new Federal policy applicable to all Federal 
grant applicants. The policy requires all Federal grant applicants to 
provide a Dun and Bradstreet Data Universal Numbering System (DUNS) 
number when applying for Federal grants or cooperative agreements on or 
after October 1, 2003. The DUNS number will be required whether an 
applicant is submitting a paper application or using the government-
wide electronic portal (http://www.Grants.gov). A DUNS number will be 
required for every application for a new award or renewal/continuation 
of an award, including applications or plans under formula, entitlement 
and block grant programs, submitted on or after October 1, 2003.
    Please ensure that your organization has a DUNS number. You may 
acquire a DUNS number at no cost by calling the dedicated toll-free 
DUNS number request line on 1-866-705-5711 or you may request a number 
on-line at http://www.dnb.com.

IV. Application and Submission Information

1. Address To Request Application Package

    Office of Community Services, Operations Center, 1815 North Fort 
Myer Drive, Suite 300, Arlington, Virginia 22209, Email: 
[email protected], Telephone: (800) 281-9519.

2. Content and Form of Application Submission

A. Application Content
    Each application must include the following components:
    1. Table of Contents.
    2. Abstract of the Proposed Project--one or two paragraphs, not to 
exceed 350 words, that describe the community in which the project will 
be implemented, beneficiaries to be served, type(s) of business(es) to 
be developed, type(s) of jobs to be created, projected cost-per-job, 
any land or building to be purchased or building constructed, resources 
leveraged and intended impact on the community.
    3. Completed Standard Form 424--that has been signed by an official 
of the organization applying for the grant who has legal authority to 
obligate the organization. Under Box 11, indicate the Priority Area for 
which the application is written.
    4. Standard Form 424A--Budget Information-Non-Construction 
Programs.
    5. Standard Form 424B--Assurances-Non-Construction Programs.
    6. Narrative Budget Justification--for each object class category 
required under Section B, Standard Form 424A.
    Applicants are encouraged to use job titles and not specific names 
in developing the application budget.
    However, the specific salary rates or amounts for staff positions 
identified must be included in the application budget.
    7. Project Narrative--A narrative that addresses issues described 
in the ``Application Review Information'' and the ``Review and 
Selection Criteria'' sections of this announcement.
B.Application Format
    Submit application materials on white 8\1/2\ x 11 inch paper only. 
Do not use colored, oversized or folded materials.
    Do not include organizational brochures or other promotional 
materials, slides, films, clips, etc.
    The font size may be no smaller than 12 pitch and the margins must 
be at least one inch on all sides.
    Number all application pages sequentially throughout the package, 
beginning with the abstract of the proposed project as page number one.
    Present application materials either in loose-leaf notebooks or in 
folders with pages two-hole punched at the top center and fastened 
separately with a slide paper fastener.
    Each application should include one signed original and two 
additional copies.
C. Page Limitation
    The application package including sections for the Table of 
Contents, Project Abstract, Project and Budget Narratives, business and 
work plans must not exceed 60 pages. The page limitation does not 
include Standard Forms and Assurances, Certifications, Disclosures, 
appendices and any supplemental documents as required in this 
announcement.
    An application that exceeds the page limitation will be considered 
``non-responsive'' and be returned to the applicant without further 
review.
D. Required Standard Forms
    Applicants must submit a signed Standard Form 424, Application for 
Federal Assistance, Standard Form 424A Budget Information--Non-
Construction Projects, and Standard Form 424B Assurances--Non-
Construction Programs.
    Applicants must provide a certification regarding lobbying when 
applying for an award in excess of $100,000. Applicants must sign and

[[Page 28912]]

return the certification with their applications.
    Applicants must disclose lobbying activities on the Standard Form 
LLL when applying for an award in excess of $100,000. Applicants who 
have used non-Federal funds for lobbying activities in connection with 
receiving assistance under this announcement shall complete a 
disclosure form to report lobbying. Applicants must sign and return the 
disclosure form, if applicable, with their applications.
    Applicants must make the appropriate certification of their 
compliance with all Federal statutes relating to nondiscrimination. 
Applicants provide certification by signing the SF424 and need not mail 
back the certification with the application.
    Applicants must make the appropriate certification of their 
compliance with the requirements of the Pro-Children Act of 1994 as 
outlined in Certification Regarding Environmental Tobacco Smoke. 
Applicants provide certification by signing the SF424 and need not mail 
back the certification with the application.

3. Submission Date and Times

    The closing time and date for receipt of applications is 4:30 p.m. 
Eastern Standard Time (EST) on July 19, 2004. Mailed or hand carried 
applications received after 4:30 p.m. on the closing date will be 
classified as late.
    Deadline: Mailed applications shall be considered as meeting an 
announced deadline if they are received on or before the deadline time 
and date at the U.S. Department of Health and Human Services, 
Administration for Children and Families, Office of Community Services 
Operations Center, 1815 Fort Myer Drive, Suite 300, Arlington, Virginia 
22209, Attention: Operations Center. Applicants are responsible for 
mailing applications well in advance, when using all mail services, to 
ensure that the applications are received on or before the deadline 
time and date.
    Applications hand carried by applicants, applicant couriers, other 
representatives of the applicant, or by overnight/express mail couriers 
shall be considered as meeting an announced deadline if they are 
received on or before the deadline date, between the hours of 8 a.m. 
and 4:30 p.m., Eastern Standard Time (EST), at the U.S. Department of 
Health and Human Services (HHS), Administration for Children and 
Families, Office of Community Services Operations Center, 1815 North 
Fort Myer Drive, Suite 300, Arlington, Virginia 22209, between Monday 
and Friday (excluding Federal holidays). This address must appear on 
the envelope/package containing the application with the note: 
``Attention: Operations Center''. Applicants are responsible for 
express/overnight mail services delivery.
    Late applications: Applications which 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 mail service. Determinations 
to extend or waive deadline requirements rest with the Chief Grants 
Management Officer.
    Required Forms:

----------------------------------------------------------------------------------------------------------------
                                                           Required form or
        What to submit             Required content             format                   When to submit
----------------------------------------------------------------------------------------------------------------
Table of Contents.............  As described above....  Consistent with         By application due date.
                                                         guidance in
                                                         ``Application
                                                         Format'' section of
                                                         this announcement.
Survey for Private, Non-Profit  Per required form.....  May be found on http:// By application due date.
 Applicants.                                             www.acf.hhs.gov/
                                                         programs/ofs/
                                                         forms.htm.
Abstract of Proposed Project..  Identifies project,     Consistent with         By application due date.
                                 the target population   guidance in
                                 and the major           ``Application
                                 elements of the         Format'' section of
                                 proposed project.       this announcement.
Completed Standard From 424...  As described above and  May be found on http:// By application due date.
                                 per required form.      www.acf.hhs.gov/
                                                         programs/ofs/
                                                         forms.htm.
Completed Standard Form 424A..  As described above and  May be found on http:// By application due date.
                                 per required form.      www.acf.hhs.gov/
                                                         programs/ofs/
                                                         forms.htm.
Completed Standard Form 424B..  As described above and  May be found on http:// By application due date.
                                 per required form.      www.acf.hhs.gov/
                                                         programs/ofs/
                                                         forms.htm.
Narrative Budget Justification  As described above....  Consistent with         By application due date.
                                                         guidance in
                                                         ``Application
                                                         Format'' section of
                                                         this announcement.
Project Narrative.............  A narrative that        Consistent with         By application due date.
                                 addresses issues        guidance in
                                 described in the        ``Application
                                 ``Application Review    Format'' section of
                                 Information'' and the   this announcement.
                                 ``Review and
                                 Selection Criteria''
                                 sections of this
                                 announcement.
Certification regarding         As described above and  May be found on http:// By application due date.
 lobbying.                       per required form.      www.acf.hhs.gov/
                                                         programs/ofs/
                                                         forms.htm.
Certification regarding         As described above and  May be found on http:// By application due date.
 environmental tobacco smoke.    per required form.      www.acf.hhs.gov/
                                                         programs/ofs/
                                                         forms.htm.
----------------------------------------------------------------------------------------------------------------

    Additional Forms: Private-non-profit organizations are encouraged 
to submit with their applications the additional survey located under 
``Grant Related Documents and Forms'' titled ``Survey for Private, Non-
Profit Grant Applicants.''

[[Page 28913]]



----------------------------------------------------------------------------------------------------------------
                                                           Required form or
        What to submit             Required content             format                   When to submit
----------------------------------------------------------------------------------------------------------------
Survey for Private, Non-Profit  Per required form.....  May be found on http:// By application due date.
 Grant Applicants.                                       www.acf.hhs.gov/
                                                         programs/ofs/
                                                         forms.htm.
----------------------------------------------------------------------------------------------------------------

4. Intergovernmental Review

State Single Point of Contact (SPOC)
    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. As of October 1, 2003, 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:
    All States and Territories except Alabama, Alaska, Arizona, 
Colorado, Connecticut, Hawaii, Idaho, Indiana, Kansas, Louisiana, 
Minnesota, Montana, Nebraska, New Jersey, Ohio, Oklahoma, Oregon, 
Pennsylvania, South Dakota, Tennessee, Vermont, Virginia, Washington, 
Wyoming and Palau have elected to participate in the Executive Order 
process and have established Single Points of Contact (SPOCs). 
Applicants from these twenty-five jurisdictions need take no action.
    Although the jurisdictions listed above no longer participate in 
the process, entities which have met the eligibility requirements of 
the program are still eligible to apply for a grant even if a State, 
Territory, Commonwealth, etc. does not have a SPOC. All remaining 
jurisdictions participate in the Executive Order process and have 
established SPOCs. Applicants from participating jurisdictions should 
contact their SPOCs as soon as possible to alert them of the 
prospective applications and receive 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. The applicant must submit all required materials, if 
any, to the SPOC and indicate the date of this submittal (or the date 
of contact if no submittal is required) on the Standard Form 424, item 
16a. Under 45 CFR 100.8(a) (2), a SPOC has 60 days from the application 
deadline to comment on proposed new or competing continuation awards.
    SPOCs are encouraged to eliminate the submission of routine 
endorsements as official recommendations. Additionally, SPOCs are 
requested to clearly differentiate between mere advisory comments and 
those official State process recommendations which may trigger the 
``accommodate or explain'' rule.
    When comments are submitted directly to ACF, they should be 
addressed to: Department of Health and Human Services, Administration 
for Children and Families, Division of Discretionary Grants, 370 
L'Enfant Promenade, SW., Mail Stop 6C-462, Washington, DC 20447.
    A list of the Single Points of Contact for each State and Territory 
is included with the application materials for this announcement.

5. Funding Restrictions

Cost Per Job
    OCS will not fund projects with a cost-per-job in CED funds that 
exceeds $10,000. An exception will be made if the project includes 
purchase of land or a building, or major renovation or construction of 
a building. In this instance, the applicant must explain the factors 
that raise the cost beyond $10,000. In no instance, will OCS allow for 
more than $15,000 cost-per-job in CED funds. Cost per job is calculated 
by dividing the number of jobs to be created by the amount of the CED 
grant request.
National Historic Preservation Act
    If an applicant is proposing a project which will affect a property 
listed 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 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 must consult with the State 
Historic Preservation Officer and describe in the narrative the content 
of such consultation.
Sub-Contracting or Delegating Projects
    OCS will not fund any project where the role of the applicant is 
primarily to serve as a conduit for funds to organizations other than 
the applicant. The applicant must have a substantive role in the 
implementation of the project for which funding is requested. This 
prohibition does not bar the making of sub-grants or sub-contracting 
for specific services or activities needed to conduct the project.
Number of Projects in Application
    Each application may include only one proposed project.
Prohibited Activities
    OCS will not consider applications that propose to establish Small 
Business Investment Corporations or Minority Enterprise Small Business 
Investment Corporations.
    OCS will not fund projects that are primarily education and 
training projects. In projects where participants must be trained, any 
funds proposed for training must be limited to specific job-related 
training to those individuals who have been selected for employment in 
the grant supported project. Projects involving training and placement 
for existing vacant positions will be disqualified from competition.
    OCS will not fund projects that would result in the relocation of a 
business from one geographic area to another resulting in job 
displacement.
    Pre-award costs will not be covered by an award.

6. Other Submission Requirements

Private Nonprofit Community Development Corporation
    Applicants must provide proof of nonprofit status and proof of 
status as a community development corporation as required by statute 
and as described under ``Additional Information on Eligibility.''
Sufficiency of Financial Management System
    Because CED funds are Federal, all grantees must be capable of 
meeting the requirements of 45 CFR Part 74 concerning their financial 
management system. To assure that the applicant has such capability, 
applications must include a signed statement from a Certified or 
Licensed Public Accountant as to the sufficiency of the CDCs financial 
management system in accordance with 45 CFR 74 and financial statements 
for the CDC for the

[[Page 28914]]

prior three years. If such statements are not available because the CDC 
is a newly formed entity, the application must include a statement to 
this effect. The CDC 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.
Business Plan
    Applicants for Priority Area 2. Incremental Development Projects, 
must submit a business plan. For incubator or microenterprise 
development projects, the business plan covers the project, not the 
individual business plans of beneficiaries.
    The business plan is a major component that will be evaluated by an 
expert review panel, OCS and OGM to determine the feasibility of a 
business venture or other economic development project. It must address 
all the relevant elements as follows:
    (1) EXECUTIVE SUMMARY (limit to 2 pages)
    (2) Description of the business: The business as a legal entity and 
its general business category. Business activities must be described by 
Standard Industrial Codes (SIC) using the North American Industry 
Classification System (NAICS) and jobs by occupational classification. 
This information is published by the U. S. Department of Commerce in 
the Statistical Abstract of the United States, 1998, Tables No. 679 and 
680. These tables include information necessary to meet this 
requirement.
    (3) Description of the industry, current status and prospects.
    (4) Products and Services, including detailed descriptions of:
    (a) Products or services to be sold;
    (b) Proprietary Position of any of the product, e.g., patents, 
copyright, trade secrets;
    (c) Features of the product or service that may give it an 
advantage over the competition;
    (5) Market Research: This section describes the research conducted 
to assure that the business has a substantial market to develop and 
achieve sales in the face of competition. This includes researching:
    (a) Customer base: Describe the actual and potential purchasers for 
the product or service by market segment.
    (b) Market size and trends: Describe the site of the current total 
market for the product or service offered;
    (c) Competition: Provide an assessment of the strengths and 
weaknesses of the competition in the current market;
    (d) Estimated market share and sales: Describe the characteristics 
of the product or service that will make it competitive in the current 
market;
    (6) Marketing Plan: The marketing plan details 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 addresses overall marketing, strategy, packaging, 
service and warranty, pricing, distribution and promotion.
    (7) 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, describe the nature, 
extent and cost of this work. The section covers items such as 
development status and tasks, difficulties and risks, product 
improvement and new products and costs.
    (8) Operations Plan: An operations plan describes the kind of 
facilities, site 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.
    (9) Management Team: This section describes the technical, 
managerial and business skills and experience to be brought to the 
project. This a description of key management personnel and their 
primary duties; compensation and/or ownership; the organizational 
structure and placement of this proposed project within the 
organization; the board of directors; management assistance and 
training needs; and supporting professional services.
    (10) Overall Schedule: This section is the implementation plan 
which shows the timing and interrelationships of the major events or 
benchmarks necessary to launch the venture and realize its objectives. 
This includes a month-by-month schedule of activities such as product 
development, market planning, sales programs, production and 
operations. If the proposed project is for construction, this section 
lays out timeframes for conduct of predevelopment, architectural, 
engineering and environmental and other studies, and acquisition of 
permits for building, use and occupancy that are required for the 
project.
    (11) Job Creation: This section describes the job creation 
activities and projections expected as a result of this project. This 
includes a description of the strategy that will be used to identify 
and hire individuals who are low-income, including those on TANF. This 
section includes the following:
    (a) The number of permanent jobs that will be created during the 
project period, with particular emphasis on jobs for low-income 
individuals.
    (b) For low-income individuals, the number of jobs that will be 
filled by low income individuals (this must be at least 60% of all jobs 
created); the number of jobs that have career development opportunities 
and a description of those jobs; the number of jobs that will be filled 
by individuals receiving TANF; the annual salary expected for each 
person employed.
    (c) For low-income individuals who become self-employed, the number 
of self-employed and other ownership opportunities created; 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-employment after the businesses are in place; and expected 
net profit after deductions of business expenses;

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

    (12) Financial Plan: The financial plan demonstrates the economic 
supports underpinning the project. Its shows the project's potential 
and the timetable for financial self-sufficiency. The following 
exhibits must be submitted for the first three years of the business' 
operation:
    (a) Profit and Loss Forecasts--quarterly for each year;
    (b) Cash Flow Projections--quarterly for each year;
    (c) Pro forma balance sheets--quarterly for each year;
    (d) Sources and Use of Funds Statement for all funds available to 
the project;
    (e) Brief summary discussing any further capital requirements and 
methods or projected methods for obtaining needed resources.
    (13) Critical Risks and Assumptions: This section covers the risks 
faced by the project and assumptions surrounding them. This includes a 
description of the risks and critical assumptions relating to the 
industry, the venture, its personnel, the product or service market 
appeal, and the timing and financing of the venture.
    (14) Community Benefits: This section describes other economic and 
non-economic benefits to the community such as development of a 
community's physical assets; provision of needed, but currently 
unsupplied, services or products to the community; or improvement in 
the living environment.

[[Page 28915]]

Work Plan
    An applicant must include a detailed work plan covering the 
activities to be undertaken and benchmarks that demonstrate progress 
toward stated goals and measurable objectives.
Third Party Agreements
    Applicants submitting an application for funding under Priority 
Area 2, Incremental Development Projects that proposes to use some or 
all of the requested CED 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), are required to submit signed Third Party Agreements in 
the application, if available and executed by the time of submission of 
the application along with the business plan, for approval by OCS.
    While Third Party Agreements need not be in place at the time of 
the application, following are requirements for these agreements.
    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.
    All third party agreements must include written commitments as 
follows: From third party (as appropriate): (1) 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. (2) The grantee 
will have the right to screen applicants for jobs to be filled by low-
income individuals and to verify their eligibility. (3) If the 
grantee's equity investment equals 25% or more of the business' assets, 
the grantee will have representation on the board of directors. (4) 
Reports will be made to the grantee regarding the use of grant funds on 
a quarterly basis or more frequently, if necessary. (5) Procedures will 
be developed to assure that there are no duplicate counts of jobs 
created. (6) 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. From the grantee: (1) 
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. (2) How the grantee will provide 
oversight of the grant-supported activities of the third party for the 
life of the agreement. Detailed information must be provided on how the 
grant funds will be used by the third party by submitting a Sources and 
Uses of Funds Statement.
    A third party agreement covering an equity investment must contain, 
at a minimum, the following: (1) Purpose(s) for which the equity 
investment is being made. (2) The type of equity transaction (e.g. 
stock purchase). (3) Cost per share and basis on which the cost per 
share is derived. (4) Number of shares being purchased. (5) Percentage 
of CDC ownership in the business. (6) Term of duration of the 
agreement. (7) Number of seats on the board, if applicable. (8) 
Signatures of the authorized officials of the grantee and third party 
organization.
    A third party agreement covering a loan transaction must contain, 
at a minimum, the following information: (1) Purpose(s) for which the 
loan is being made. (2) Interest rates and other fees. (3) Terms of the 
loan. (4) Repayment schedules. (5) Collateral security. (6) Default and 
collection procedures. (7) Signatures of the authorized officials of 
the lender and borrower.
    All third party agreements must 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 part 74 and financial statements for the third 
party organization for the prior three years. If such statements are 
not available because the organization is a newly formed entity, the 
application must include a statement to this effect. 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.
Evaluation
    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.

V. Application Review Information

1. Criteria

Paperwork Reduction Act of 1995 (Public Law 104-13)
    Public reporting burden for this collection of information is 
estimated to average 25 hours per response, including the time for 
reviewing instructions, gathering and maintaining the data needed, and 
reviewing the collection of information.
    The project description is approved under Office of Management and 
Budget (OMB) Control Number 0970-0139.
    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.
Purpose
    The project description provides a 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. In preparing your project 
description, all information requested through each specific evaluation 
criteria should be provided. Awarding offices use this and other 
information in making their funding recommendations. It is important, 
therefore, that this information be included in the application.
Introduction
    Applicants required to submit a full project description shall 
prepare the project description statement in accordance with the 
following instructions and the specified evaluation criteria. The 
instructions give a broad overview of what your project description 
should include while the evaluation criteria expands and clarifies more 
program-specific information that is needed.
Project Summary/Abstract
    Provide a summary of the project description (a page or less) with 
reference to the funding request.
Objectives and Need for Assistance
    Clearly identify the physical, economic, social, financial, 
institutional, and/or other problem(s)

[[Page 28916]]

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.
Results or Benefits Expected
    Identify the results and benefits to be derived. For example, 
describe the population to be served by the program and the number of 
new jobs that will be targeted to the target population. Explain how 
the project will reach the targeted population, how it will benefit 
participants including how it will support individuals to become more 
economically self-sufficient.
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 activities 
accomplished. Account for all functions or activities identified in the 
application. Cite factors that might accelerate or decelerate the work 
and state your reasons for taking the proposed approach rather than 
others. Describe any unusual features of the project such as design or 
technical 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, for 
example such terms as the ``number of people served.'' 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 
individuals who will work on the project. Include a short description 
of the nature of their effort or contribution.
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 explains 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.
Organizational 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.
Budget and Budget Justification
    Provide 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 the 
categorical costs are derived. Discuss the necessity, reasonableness, 
and allocability of the proposed costs.

1. Evaluation Criteria

Criteria for Review and Evaluation of Applications Submitted Under 
Priority Area--Incremental Development Projects

Evaluation Criterion I: Approach (Maximum: 30 Points)
    a. The business plan is sound and feasible. The project must be 
able to be implemented soon after a grant award is made. The business 
plan meets the requirements of this program announcement and 
development of business and creation of jobs will occur during the 
project period. (0-20 points)
    b. The applicant has site control. (0-1 points)
    c. Executed third party agreements meet the requirements set forth 
above. (0-2 points)
    d. The required financial documents are contained in the 
application, clearly describe proposed use of CED funds and demonstrate 
the project is viable. (0-7 points)
Evaluation Criterion II: Organizational Profiles (Maximum: 20 Points)
    a. Organizational profile.
    The application demonstrates that the applicant has the management 
capacity, organizational structure and successful record of 
accomplishment relevant to business development, commercial 
development, physical development, and/or financial services and that 
it has the ability to mobilize other financial and in-kind resources. 
(0-10 points)
    b. Staff skills, resources and responsibilities.
    The application describes in brief resume form the experience and 
skills of

[[Page 28917]]

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)
    c. The application documents adequate facilities and resources 
(i.e. space and equipment) to successfully carry out the work plan. (0-
3 points)
    d. 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. (0-2 points)
Evaluation Criterion III: Results or Benefit Expected (Maximum: 15 
Points)
    a. Results or benefits Expected.
    Application proposes to produce permanent and measurable results 
including, but not limited to, employment and business ownership 
opportunities that reduce poverty, reduce the need for TANF assistance 
in the community and thus enable families to be economically self-
sufficient. (0-3 points)
    Application proposes a project designed to produce the above 
mentioned measurable results specifically in a rural community or urban 
neighborhood characterized by economic distress. Indicators of economic 
distress may include: High rate of poverty; high incidence of TANF 
program participation; high rates of unemployment; significant rates of 
children dropping out of school; high incidence of crime. (0-2 points)
    b. Community empowerment and coordination.
    Application documents that the applicant is an active partner in 
either a new or on-going comprehensive community revitalization project 
such as: A federally-designated Empowerment Zone, Enterprise Community 
or Renewal Community project that has clear goals of strengthening 
economic and human development in target neighborhoods; a State or 
local-government supported comprehensive neighborhood revitalization 
project; or a private sector supported community revitalization 
project. (0-2 points)
    c. Cost-per-job.
    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 not to exceed $10,000 in OCS funds unless the project 
involves construction or significant renovation. (0-5 points)
    d. Career development opportunities.
    The application documents that the jobs to be created for low-
income people have career development opportunities that will promote 
self-sufficiency. (0-3 points)
Evaluation Criterion IV: Objectives and Need for Assistance (Maximum: 
10 points)
    a. 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 with high 
unemployment and pervasive poverty. The application documents that both 
the unemployment rate and poverty level for the targeted neighborhood 
or community are equal to or greater than the state or national level. 
(0-5 points)
    b. 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)
    c. The application shows how the project will respond to stated 
need. (0-3 points)
Evaluation Criterion V: Project Evaluation (Maximum: 10 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:
    a. 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. (0-2 points)
    b. A reporting format based on the grantee's demonstration 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)
    c. The identity and qualifications of the proposed third-party 
evaluator, 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)
    d. 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 from 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.
    e. For all of the above stated reasons, it is important that each 
successful applicant have a third-party evaluator selected and are 
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

[[Page 28918]]

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 of, 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.
Evaluation Criterion VI: Public-Private Partnerships (Maximum: 10 
points)
    a. Mobilization of resources:
    The application documents the applicant 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. (0-5 points)

    Note 1: 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 2: 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 3: 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.
    b. Integration/coordination of services:

    The application demonstrates a commitment to, or agreements with, 
local agencies responsible for administering child support enforcement, 
employment education, 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 agreement includes: (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 application also provides documentation that illustrates the 
organizational experience is related to the employment, education and 
training program. (0-1 point)
Evaluation Criterion VII: Budget and Budget Justification (Maximum: 5 
points)
    a. Funds requested are commensurate with the level of effort 
necessary to accomplish the goals and objectives of the project. (0-2 
points)
    b. 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)
    c. The estimated cost to the government of the project also is 
reasonable in relation to the anticipated results. (0-1 point)

2. Review and Selection Process

Initial OCS Screening
    Each application submitted to OCS will be screened to determine 
whether it was received by the closing date and time.
    Applications received by the closing date and time will be screened 
for completeness and conformity with the following requirements. Only 
complete applications that meet the requirements listed below will be 
reviewed and evaluated competitively. Other applications will be 
returned to the applicants with a notation that they were unacceptable 
and will not be reviewed.
    All applications must comply with the following requirements except 
as noted:
    (a) The application must contain a signed Standard Form 424 
Application for Federal Assistance ``SF-424'', a Standard Form 424-A 
Budget Information ``SF-424A'' and signed Standard Form 424B 
Assurance--Non-Construction Programs ``SF-424B'' completed according to 
instructions provided in this Program Announcement. The forms 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. The applicant's legal name as required on the SF-424 (Item 5) 
must match that listed as corresponding to the Employer Identification 
Number (Item 6);
    (b) The application must include a project narrative that meets 
requirements set forth in this announcement.
    (c) The application must contain documentation of the applicant's 
tax-exempt and CDC statuses as indicated in the ``Additional 
Information on Eligibility'' section of this announcement.
OCS Evaluation of Applications
    Applications that pass the initial OCS screening will be reviewed 
and rated by a panel based on the program elements and review criteria 
presented in relevant sections of this program announcement.
    The review criteria are designed to enable the review panel to 
assess the quality of a proposed project and determine the likelihood 
of its success. The criteria are closely related to each other and are 
considered as a whole in judging the overall quality of an application. 
The review panel awards points only to applications that are responsive 
to the program elements and relevant review criteria within the context 
of this program announcement.
    The OCS Director and the program staff use the reviewer scores when 
considering competing applications. Reviewer 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 the review panel. Because other important factors 
are taken into consideration, highly ranked applications are not 
guaranteed funding. These other considerations include, for example: 
the timely and proper completion by the applicant of projects funded 
with OCS funds granted in the last five (5) years; comments of 
reviewers and government officials; staff evaluation and input; amount 
and

[[Page 28919]]

duration of the grant requested and the proposed project's consistency 
and harmony with OCS goals and policy; geographic distribution of 
applications; previous program performance of applicants; compliance 
with grant terms under previous HHS grants, including the actual 
dedication to program of mobilized resources as set forth in project 
applications; audit reports; investigative reports; and applicant's 
progress in resolving any final audit disallowance on previous OCS or 
other Federal agency grants.

VI. Award Administration Information

    1. Award Notices: 90 days after the due date of applications.
    The successful applicants will be notified through the issuance of 
a Financial Assistance Award document which sets forth the amount of 
funds awarded, the terms and conditions of the award, the effective 
date of the award, the budget period for which funds are awarded, and 
the total project period for which support is contemplated. The 
Financial Assistance Award is signed and issued via postal mail by an 
authorized Grants Officer.
    2. Administrative and National Policy Requirements: 45 CFR Part 74.

3. Reporting Requirements

    Programmatic Reports: Semi-annually with a final report due 90 days 
after the project end date.
    Financial Reports: Semi-annually with a final report due 90 days 
after the project end date.

VII. Agency Contacts

    Program Office Contact: Debbie Brown, Office of Community Services, 
370 L'Enfant Promenade, SW., Aerospace Building 5th Floor West, 
Washington, DC 20447, Email: [email protected], Telephone: (800) 281-9519.
    Grants Management Office Contact: Barbara Ziegler Johnson, Office 
of Grants Management, Division of Discretionary Grants, 370 L'Enfant 
Promenade, SW., Aerospace Building 4th Floor West, Washington, DC 
20447-0002. Email: [email protected]. Telephone: (800) 281-9519.

VIII. Other Information

    Additional information about this program and its purpose can be 
located on the following Web site: http://www.acf.hhs.gov/programs/ocs.

    Dated: May 11, 2004.
Clarence H. Carter,
Director, Office of Community Services.
[FR Doc. 04-11238 Filed 5-18-04; 8:45 am]
BILLING CODE 4184-01-P