Office of Community Services; Community Services Block Grant Program; Community Economic Development; Discretionary Grant Program-Operational Projects, 20124-20135 [05-7475]

Agencies

• DEPARTMENT OF HEALTH AND HUMAN SERVICES
• Administration for Children and Families
• Children and Families Administration

[Federal Register Volume 70, Number 73 (Monday, April 18, 2005)]
[Notices]
[Pages 20124-20135]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-7475]


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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families


Office of Community Services; Community Services Block Grant 
Program; Community Economic Development; Discretionary Grant Program--
Operational Projects

    Announcement Type: Initial.
    Funding Opportunity Number: HHS-2005-ACF-OCS-EE-0019.
    CFDA Number: 93.570.
    Due Date for Applications: Application is due June 17, 2005.
    Executive Summary: The Community Services Block Grant (CSBG) Act of 
1981, as amended, (Section 680 (a)(2) 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 operational project grants to Community Development 
Corporations (CDCs) that are experienced in implementing economic 
development projects. The primary purpose of the Operational Projects 
(OPs) is to assist eligible CDCs, including American Indian and Native 
Alaskan, and faith based organizations that are CDCs that have in 
place: (1) Written commitments for all projected non-Community Economic 
Development (CED) funding, (2) project operations, (3) site control for 
their economic development projects and (4) referral sources (from 
which low-income individuals will be referred to the project). Low-
income beneficiaries of such projects include those who are living in 
poverty as determined by the HHS Guidelines on Poverty (at https://
aspe.hhs.gov/poverty/poverty.shtml). They may be unemployed; public 
assistance recipients, including recipients of Temporary Assistance for 
Needy Families (TANF), individuals transitioning from the prison system 
into the community, at-risk youth, custodial and non-custodial parents; 
residents living in public housing; persons with disabilities; and 
persons who are homeless. Operational 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. The opportunities must aim to improve the quality of the 
economic and social environment of TANF recipients; low-income 
residents including displaced workers; individuals transitioning from 
the prison system into the community; at-risk youth; non-custodial 
parents, particularly those of children receiving TANF assistance; 
individuals residing in public housing; individuals who are homeless; 
and individuals with disabilities. Grant funds under this announcement 
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. Eligible applicants must submit a business plan that 
shows the economic feasibility of the venture. Applicants for an OP 
must have in place written commitments for all projected non-CED 
funding required for the project. Written proof of commitments from 
third parties must be submitted with the application. Letters of 
support, only, are insufficient. The application must also clearly 
document in detail the extent to which site control has been acquired.

I. Funding Opportunity Description

    The Community Services Block Grant (CSBG) Act of 1981, as amended, 
(Section 680 (a)(2) 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 Operational Project grants to Community Development Corporations 
(CDCs) that are experienced in implementing economic development 
projects. CDCs participating in the Weed and Seed Program under the 
Department of Justice are encouraged to apply for funding for their 
revitalization effort.
    The primary purpose of the Operational Projects (OPs) is to assist 
eligible CDCs that have in place (1) written commitments for all 
projected non-CED funding, (2) project operations, (3) site control for 
their economic development project and (4) referral sources (which low-
income individuals will be referred to the project). Eligible 
applicants must submit a business plan that shows the economic 
feasibility of the venture. Applicants for an OP must have in place 
written commitments for all projected non-CED funding required for the 
project. Written proof of commitments from third parties must be 
submitted with the application. Letters of support, only, are 
insufficient. The application must also detail the extent to which site 
control has been acquired. Low-income beneficiaries of such projects 
include those who are living in poverty as determined by the HHS 
Guidelines on Poverty at https://aspe.hhs.gov/poverty/poverty.shtml.
    They may be unemployed, public assistance recipients, including 
recipients of Temporary Assistance for Needy Families (TANF), at-risk 
youth, custodial and non-custodial parents, public housing residents, 
persons with disabilities and persons who are homeless.
    Operational 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. Generally, 
the opportunities must aim to improve the quality of the economic and 
social environment of TANF recipients; low-income residents including 
displaced workers; persons transitioning from prison back into the 
community; ex-offenders; at-risk youth; non-custodial parents, 
particularly those of children receiving TANF assistance; individuals 
residing in public housing; individuals who are homeless; and 
individuals with disabilities. Grant funds under this announcement are 
intended to provide

[[Page 20125]]

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.

Project Goals

    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 start-ups, business expansions, 
development of new products and services, and other newly-undertaken 
physical and commercial activities. Projects must result in 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.

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, which has as a principal 
purpose planning, developing, or managing low-income housing or 
community development activities, may include American Indian and 
Native Alaskan and faith-based organizations that are CDCs.
--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 the initial building or 
large scale modernization or permanent improvement of a facility.
--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).
--Indirect Costs--This category should be used only when the applicant 
currently has an indirect cost rate approved by the Department of 
Health and Human Services (HHS) or another cognizant Federal agency.
--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 start-ups, 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.
--Low-Income Beneficiaries--Individuals whose family's taxable income 
for the preceding year did not exceed 150 percent of the poverty level 
amount.
--Non-profit Organization--An organization, including faith-based and 
community-based, that provides proof of non-profit status described in 
the ``Additional Information on

[[Page 20126]]

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.
--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: https://aspe.hhs.gov/poverty/poverty.shtml.
--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 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 (Pub. L. 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.
--Weed and Seed Program--US Department of Justice's Weed and Seed 
program was developed to demonstrate an innovative and comprehensive 
approach to law enforcement and community revitalization.

II. Award Information

    Funding Instrument Type: Grant.
    Anticipated Total Priority Area Funding: $16,000,000.
    Anticipated Number of Awards: 50 to 55.
    Ceiling on Amount of Individual Awards Per Project Period: 
$700,000.
    Floor on Amount of Individual Awards Per Project Period: None.
    Average Projected Award Amount: $700,000.
    Length of Project Periods: Applications for Operational Projects, 
either exclusively for construction purposes or non-construction 
purposes will be incrementally funded. Proposed projects must be for 
project periods of either three (3) or five (5) years with twelve month 
budget periods. Applicants can request up to $300,000 for the first 
year of funding. The application must include separate budgets for each 
of the project years with a supporting workplan that reflects the same 
period. For three (3) year projects, the second and third year funding 
cannot exceed $200,000 per year, not to exceed the balance of the total 
requested funding amount. For five (5) year projects, funding cannot 
exceed $100,000 per year, not to exceed the balance of the total 
requested funding amount. However, all grant funds for the subsequent 
years are subject to the satisfactory project performance and that the 
project continues to be in the best interest of the government in 
addition to the availability of appropriated OCS funds.
    Note that the President's 2006 budget does not include or propose 
funding for the Community Economic Development program.

III. Eligibility Information

1. Eligible Applicants

    Non-profits having a 501(c)(3) status with the IRS, other than 
institutions of higher education Non-profits that do not have a 
501(c)(3) status with the IRS, other than institutions of higher 
education.
Additional Information on Eligibility
    Applicants must be a private, non-profit Community Development 
Corporation (CDC) experienced in developing and managing economic 
development projects. 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.

[[Page 20127]]

    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. Applications that do not include proof of CDC status in 
the application will be disqualified. Applications that do not include 
proof of non-profit status in the application will be disqualified.
    Faith-based organizations that meet the statutory requirements are 
eligible to apply for these grants.

2. Cost Sharing/Matching

    None.

3. Other

    All applicants must have a Dun & Bradstreet number. 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 Federal grant applicants to provide a 
Dun & 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 (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 https://www.dnb.com.
    Non-profit organizations applying for funding are required to 
submit proof of their non-profit status.
    Proof of non-profit status is any one of the following:
     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.
     A copy of a currently valid IRS tax exemption certificate.
     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 
earning accrue to any private shareholders or individuals.
     A certified copy of the organization's certificate of 
incorporation or similar document that clearly establishes non-profit 
status.
     Any of the items in the subparagraphs immediately 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,'' ``Survey for Private, Non-Profit Grant Applicants,'' 
titled, ``Survey on Ensuring Equal Opportunity for Applicants,'' at: 
www.acf.hhs.gov/programs/ofs/forms.htm.
Disqualification Factors
    Applications that exceed the ceiling amount will be considered non-
responsive and will not be considered for funding under this 
announcement.
    Any application that fails to satisfy the deadline requirements 
referenced in Section IV.3 will be considered non-responsive and will 
not be considered for funding under this announcement.

IV. Application and Submission Information

1. Address to Request Application Package

    Debbie Brown, Administration for Children and Families, Office of 
Community Services Operations Center, 1515 Wilson Blvd., Suite 100, 
Arlington, VA 22209, (202)401-3446, OCSGRANTS@acf.hhs.gov.

2. Content and Form of Application Submission

Application Content
    Each application must include the following components:
    1. Table of Contents
    2. Project Summary/Abstract--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. Note: Please see 
Section V.1. Criteria, for instructions on preparing the project 
summary/abstract and the full project description.
    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 (This announcement is for Priority 
Area 1--Operational Projects).
    4. Standard Form 424A--Budget Information--Non-Construction 
Programs.
    5. Standard Form 424B--Budget Information--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.
    8. Private, Non-profit Community Development Corporation--
Applicants must provide proof of status as a community development 
corporation as required by statute and as described under ``Additional 
Information on Eligibility.''
    9. 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.
    10. Business Plan--Applicants for the OP grant announcement must 
submit a business plan covering the following elements: 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 of the application which is 
used by OCS and the Office of Grants Management (OGM) to determine the 
feasibility of a business venture or other economic development 
project. It addresses all the relevant elements as follows:
    Applications for Operational Projects--must submit a business plan. 
For microenterprise development projects, the business plan covers the 
project, not the individual business plans of beneficiaries. The 
business plan is a major component of the application used by the 
Office of Community

[[Page 20128]]

Services and the Office of Grants Management to determine the 
feasibility of a business venture or other economic development 
project. OCS applicants to must address all the relevant elements as 
follows:
    (1) EXECUTIVE SUMMARY (limit to 2 pages)
    (2) Description of the type of business.
    (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 
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 purchases 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 warrant, 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-time 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 is 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 
and an annual schedule of the requested budget. 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 by 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 percent 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 ongoing 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. It 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 and projected to be available; (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.
    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 percent 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 percent 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

[[Page 20129]]

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 or 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 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.
    You may submit your application to us in either electronic or paper 
format. To submit an application electronically, please use the 
www.Grants.gov/Apply site. If you use Grants.gov, you will be able to 
download a copy of the application package, complete it off-line, and 
then upload and submit the application via the Grants.gov site. ACF 
will not accept grant applications via email or facsimile transmission.
    Please note the following if you plan to submit your application 
electronically via Grants.gov:
     Electronic submission is voluntary, but strongly 
encouraged.
     When you enter the Grants.gov site, you will find 
information about submitting an application electronically through the 
site, as well as the hours of operation. We strongly recommend that you 
do not wait until the application deadline date to begin the 
application process through Grants.gov.
     To use Grants.gov, you, as the applicant, must have a DUNS 
Number and register in the Central Contractor Registry (CCR). You 
should allow a minimum of five days to complete the CCR registration.
     You will not receive additional point value because you 
submit a grant application in electronic format, nor will we penalize 
you if you submit an application in paper format.
     You may submit all documents electronically, including all 
information typically included on the SF 424 and all necessary 
assurances and certifications.
     Your application must comply with any page limitation 
requirements described in this program announcement.
     After you electronically submit your application, you will 
receive an automatic acknowledgement from Grants.gov that contains a 
Grants.gov tracking number. The Administration for Children and 
Families will retrieve your application from Grants.gov.
     We may request that you provide original signatures on 
forms at a later date.
     You may access the electronic application for this program 
on www.Grants.gov
     You must search for the downloadable application package 
by the CFDA number.
    Applicants that are submitting their application in paper format 
should submit an original and two copies of the complete application. 
The original and each of the two copies must include all required 
forms, certifications, assurances, and appendices, be signed by an 
authorized representative, have original signatures, and be submitted 
unbound.
    Private, non-profit organizations are encouraged to submit with 
their applications the survey located under ``Grant Related Documents 
and Forms,'' ``Survey for Private, Non-Profit Grant Applicants,'' 
titled, ``Survey on Ensuring Equal Opportunity for Applicants,'' at: 
www.acf.hhs.gov/programs/ofs/forms.htm.
Standard Forms and Certifications
    The project description should include all the information 
requirements described in the specific evaluation criteria outlined in 
the program announcement under Section V Application Review 
Information. In addition to the project description, the applicant 
needs to complete all the standard forms required for making 
applications for awards under this announcement.
    Applicants seeking financial assistance under this announcement 
must file the Standard Form (SF) 424, Application for Federal 
Assistance; SF-424A, Budget Information--Non-Construction Programs; SF-
424B, Assurances--Non-Construction Programs. The forms may be 
reproduced for use in submitting applications. Applicants must sign and 
return the standard forms with their application.
    Applicants must furnish prior to award an executed copy of the 
Standard Form LLL, Certification Regarding Lobbying, 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, if 
applicable, with their applications (approved by the Office of 
Management and Budget under control number 0348-0046). Applicants must 
sign and return the certification with their application.
    Applicants must also understand they will be held accountable for 
the smoking prohibition included within Pub. L. 103-227, Title XII 
Environmental Tobacco Smoke (also known as the PRO-KIDS Act of 1994). A 
copy of the Federal Register notice which implements the smoking 
prohibition is included with forms. By signing and submitting the 
application, applicants are providing the certification and need not 
mail back the certification with the application.
    Applicants must make the appropriate certification of their 
compliance with all Federal statutes relating to nondiscrimination. By 
signing and submitting the applications, applicants are providing the 
certification and need not mail back the certification form. Complete 
the standard forms and the associated certifications and assurances 
based on the instructions on the forms. The forms and certifications 
may be found at: www.acf.hhs.gov/programs/ofs/forms.htm.
    Please see Section V.1. Criteria, for instructions on preparing the 
full project description.

3. Submission Dates and Times

    Due Date for Applications: June 17, 2005.
    Explanation of Due Dates: The closing time and date for receipt of 
applications is referenced above. Applications received after 4:30 p.m. 
eastern time on the closing date will be classified as late.
    Deadline: Applications shall be considered as meeting an announced

[[Page 20130]]

deadline if they are received on or before the deadline time and date 
referenced in Section IV.6. Applicants are responsible for ensuring 
applications are mailed or submitted electronically well in advance of 
the application due 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 time, at the address referenced in Section 
IV.6., between Monday and Friday (excluding Federal holidays).
    ACF cannot accommodate transmission of applications by facsimile. 
Therefore, applications transmitted to ACF by fax will not be accepted 
regardless of date or time of submission and time of receipt.
    Receipt acknowledgement for application packages will not be 
provided to applicants who submit their package via mail, courier 
services or by hand delivery. However, applicants will receive an 
electronic acknowledgement for applications that are submitted via 
Grants.gov.
    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.
    Any application received after 4:30 p.m. eastern time on the 
deadline date will not be considered for competition.
    Applicants using express/overnight mail services should allow two 
working days prior to the deadline date for receipt of applications. 
Applicants are cautioned that express/overnight mail services do not 
always deliver as agreed.
    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, or in other rare 
cases. A determination to extend or waive deadline requirements rests 
with the Chief Grants Management Officer.
    Checklist: You may use the checklist below as a guide when 
preparing your application package.

--------------------------------------------------------------------------------------------------------------------------------------------------------
             What to submit                        Required content             Required form or format                    When to submit
--------------------------------------------------------------------------------------------------------------------------------------------------------
Project Abstract........................  See Sections IV.2 and V...........  Found in Sections IV.2 and   By application due date.
                                                                               V.
Project Description.....................  See Sections IV.2 and V...........  Found in Sections IV.2 and   By application due date.
                                                                               V.
Budget Narrative/Justification..........  See Sections IV.2 and V...........  Found in Sections IV.2 and   By application due date.
                                                                               V.
SF424...................................  See Section IV.2..................  See https://www.acf.hhs.gov/ By application due date.
                                                                               programs/ofs/forms.htm.
SF-LLL Certification Regarding Lobbying.  See Section IV.2..................  See https://www.acf.hhs.gov/ By date of award.
                                                                               programs/ofs/forms.htm.
Certification Regarding Environmental     See Section IV.2..................  See https://www.acf.hhs.gov/ By date of award.
 Tobacco Smoke.                                                                programs/ofs/forms.htm.
Assurances..............................  See Section IV.2..................  ...........................  By application due date.
Private, Nonprofit Community Development  See Section IV....................  Found in Section IV........  By application due date.
 Corporation Status.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Additional Forms: Private, non-profit organizations are encouraged 
to submit with their applications the survey located under ``Grant 
Related Documents and Forms,'' ``Survey for Private, Non-Profit Grant 
Applicants,'' titled, ``Survey on Ensuring Equal Opportunity for 
Applicants,'' at: www.acf.hhs.gov/programs/ofs/forms.htm.

--------------------------------------------------------------------------------------------------------------------------------------------------------
             What to submit                        Required content                     Location                           When to submit
--------------------------------------------------------------------------------------------------------------------------------------------------------
Survey for Private, Non-Profit Grant      See form..........................  May be found on              By application due date.
 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, 2004, the following jurisdictions have elected to 
participate in the Executive Order process: Arkansas, California, 
Delaware, District of Columbia, Florida, Georgia, Illinois, Iowa, 
Kentucky, Maine, Maryland, Michigan, Mississippi, Missouri, Nevada, New 
Hampshire, New Mexico, New York, North Dakota, Rhode Island, South 
Carolina, Texas, Utah, West Virginia, Wisconsin, American Samoa, Guam, 
North Mariana Islands, Puerto Rico, and Virgin Islands. As these 
jurisdictions have elected to participate in the Executive Order 
process, they have established SPOCs. Applicants from participating 
jurisdictions should contact their SPOC, as soon as possible, to alert 
them of prospective applications and receive instructions. Applicants 
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

[[Page 20131]]

recommendations which may trigger the ``accommodate or explain'' rule.
    When comments are submitted directly to ACF, they should be 
addressed to the U.S. Department of Health and Human Services, 
Administration for Children and Families, Office of Grants Management, 
Division of Discretionary Grants, 370 L'Enfant Promenade SW., 4th 
floor, Washington, DC 20447.
    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., Washington, DC 20447.
    Although the remaining jurisdictions have chosen not to participate 
in the process, entities that meet 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. Therefore, 
applicants from these jurisdictions, or for projects administered by 
federally-recognized Indian Tribes, need take no action in regard to 
E.O. 12372.
    The official list, including addresses, of the jurisdictions that 
have elected to participate in E.O. 12372 can be found on the following 
URL: https://www.whitehouse.gov/omb/grants/spoc.html.

5. Funding Restrictions

    Grant awards will not allow reimbursement of pre-award costs.
    Cost-Per-Job: OCS will not fund projects with a cost-per-job in CED 
funds that exceed $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 into 
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 projects 
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 necessary 
to conduct the project.
    Number of Projects in Application: Except for the retail 
development initiative under the Operational Projects announcement, 
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.
    An application that exceeds the upper value of the dollar range 
specified will be considered non-responsive.

6. Other Submission Requirements

    Submission by Mail: An applicant must provide an original 
application with all attachments, signed by an authorized 
representative and two copies. The application must be received at the 
address below by 4:30 p.m. eastern time on or before the closing date. 
Applications should be mailed to: Administration for Children and 
Families, Office of Community Service Operations Center, 1515 Wilson 
Blvd., Suite 100, Arlington, VA 22209, Attention: Barbara Ziegler-
Johnson.
    Hand Delivery: An applicant must provide an original application 
with all attachments signed by an authorized representative and two 
copies. The application must be received at the address below by 4:30 
p.m. eastern time on or before the closing date. Applications that are 
hand delivered will be accepted between the hours of 8 a.m. to 4:30 
p.m. eastern time, Monday through Friday.
    Applications should be delivered to: Administration for Children 
and Families, Office of Community Services Operations Center, 1515 
Wilson Blvd., Suite 100, Arlington, VA 22209, Attention: Barbara 
Ziegler-Johnson.
    Electronic Submission: www.Grants.gov. Please see Section IV. 2 for 
guidelines and requirements when submitting applications 
electronically.

V. Application Review Information

The Paperwork Reduction Act of 1995 (Pub. L. 104-13)

    Public reporting burden for this collection of information is 
estimated to average 40 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 OMB control number 0970-
0139 which expires 4/30/2007.
    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.

1. Criteria

Introduction
    Applicants are required to submit a full project description shall 
prepare the project description statement in accordance with the 
following instructions while being aware of the specified evaluation 
criteria. The text options give a broad overview of what your project 
description should include while the evaluation criteria identifies the 
measures that will be used to evaluate applications.
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) 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

[[Page 20132]]

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.
    Describe the population to be served by the program and the number 
of new jobs that will be targeted to the population served. 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 that 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 that 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.
    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 along with a short description 
of the nature of their effort or contribution.
    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 along with 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 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.
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. If the 
applicant is a non-profit organization, submit proof of non-profit 
status in its application.
    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; (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) any of 
the items immediately 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.
Budget and Budget Justification
    Provide a budget with 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. 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.
    Evaluation Criteria: The following evaluation criteria appear in 
weighted descending order. The corresponding score values indicate the 
relative importance that ACF places on each evaluation criterion; 
however, applicants need not develop their applications precisely 
according to the order presented. Application components may be 
organized such that a reviewer will be able to follow a seamless and 
logical flow of information (e.g. from a broad overview of the project 
to more detailed information about how it will be conducted).
    In considering how applicants will carry out the responsibilities 
addressed under this announcement, competing applications for financial 
assistance will be reviewed and evaluated against the following 
criteria:
Approach (35 Points)
    (1) The business plan is the most important document. It must be 
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 job 
creation will occur during project period. (0-10 points)

[[Page 20133]]

    (2) The application includes documentation of site control. (0-10)
    (3) Executed third party agreements meet the requirements set forth 
above. (0-10)
    (4) The required financial documents are contained in the 
application and clearly describe proposed use of CED funds and 
demonstrate the project is viable. (0-5)
Organizational Profiles (15 Points)
    (1) Organizational profile. The application demonstrates 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 oth