[Sample] Federal Grant Alert

To: CDCs, EZs & ECs, Other Client Organizations, Agencies and Interested Parties

Subject: 1999 OCS Request for Proposals

(Funding for Community Economic Development Projects)

Welfare-to-Work NOFA

HUD Community Development Programs Super NOFA

The maximum funding under Priority Area 1.1, Urban and Rural Community Economic Development (for Operational grants) is expected to be $500,000 for approximately 10-13 grants, with 30 or so additional grants funded under $350,000. For the final deadline, please consult forthcoming Federal Register publications or grant alert updates on our Web Page (ncced.org/edac.html).

We anticipate the turnaround time this year to be short, which will require prompt decision making in terms of moving ahead with preparing proposals. EDAC has prepared successful OCS discretionary grant applications for a wide range of diverse CDC projects. The submissions that EDAC prepares are consistently ranked among the highest graded proposals in the nation. The application process requires extensive data gathering and pre-drafting activities. Because of the anticipated brief time period between the announcement and the deadline, we suggest you immediately consider potential projects which are capable of attracting matching funds and generating maximized employment for low-income community residents.

Priority Areas and Disbursements

Most of you are familiar with this annual program and are expected to apply for Priority Area 1.1, Urban and Rural Community Economic Development (Operational). This priority area typically provides funding for CDC business development projects which create full-time, permanent jobs for low-income residents. Favorable consideration is usually given to applicants who coordinate services with local AFDC/TANF programs or other employment training programs. Last year, eligible applicants were defined as: "private, non-profit community development corporations governed by a Board 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 projects." Projects were not to be funded if the projected cost per job exceeded or equaled $15,000.

Last year, other significant priority areas included Priority Area 1.2, a funding set-aside for projects sponsored by Historically Black Colleges and Universities (six grants of up to $350,000 are expected to be funded under this Priority Area) and Priority Area 1.3, a funding set-aside for Pre-Development projects. Priority Area 1.3 was intended to assist recently established private, locally initiated non-profit CDCs that may be lacking necessary staffing and funding to undertake economic development projects in distressed areas. Funding was awarded for the undertaking of feasibility studies and business plans for projects that created permanent employment opportunities for low-income community residents. Approximately 10 grants at $75,000 are expected to be funded under this category. Also, special consideration was provided to CDCs that are located in recently designated federal Empowerment Zones/Enterprise Communities.

Funds from Banks and Other Institutions

Last year, applicants were expected to demonstrate the generation of private funds equal to the amount of grant support requested from OCS for projects submitted under Priority Area 1.1. While there are suggestions in the grading criteria that sources of funding from public agencies or in-kind contributions will be considered, we encourage client CDC applicants to attempt to generate the valuable support of local banks. EDAC has been assisting several clients to facilitate programs wherein private financial institutions provide in-kind technical assistance for CDC economic development ventures. Obviously, a project that is receiving both financial and technical support from local banks (and/or insurance companies) will be particularly attractive to the various teams of proposal graders which will conduct comparative reviews of the numerous applications received this year.

Application Audits and Pre-Evaluations

Each year, EDAC also conducts application audits and pre-evaluations. We review draft proposals (and necessary financials, if requested). Such a pre-evaluation is an important measure to assist organizations in achieving the highest possible grade. Please contact Marcus Weiss for more information and to arrange an application evaluation.

Welfare-to-Work

On November 20, 1998, the Department of Labor awarded $273 million to 75 projects in 44 states to fund innovative strategies to provide support and training for people transitioning from welfare into the workforce. The typical grant averaged between $3 and $5 million dollars. Detailed information on the Round Two awardees by state can be found at the following website:

http://wtw.doleta.gov/documents/round2/statelst.html.

Round III applications are due: April 30, 1999.

Information regarding the Round III competition was provided in the Federal Register on January 26, 1999, beginning on page 4009. More details may be reached by surfing their web site at wtw.doleta.gov

Some activities that are allowable:

Job readiness activities

Employment activities which consist of community service programs, work experience programs or job creation through public or private sector employment wage and on-the-job training

Job placement services

Post-employment services to include basic educational training, occupational skills training, English as a second language training and mentoring

Job retention services and support services

Transportation assistance

Substance abuse treatment

Child care assistance

Emergency or short term housing

Individual development accounts

Intake assessment

Additional Information

For additional information regarding the OCS, CDFI, Welfare-to-Work applications as well as our publications, please call EDAC at (617) 742-4481 or visit our World Wide Web home page at: http://ncced.org/edac.html