2023 Revised-HHS-2022-ACF-OCS-EE-0081.pdf

Administration for Children and Families

Office of Community Services

Community Economic Development Focus on Energy Communities

HHS-2022-ACF-OCS-EE-0081

Application Due Date: 05/17/2023

Due Date for Applications:

FY 2024: April 22, 2024

Table of Contents Executive Summary

I. Program Description

II. Federal Award Information

III. Eligibility Information

III.1. Eligible Applicants

III.2. Cost Sharing or Matching

III.3. Other

IV. Application and Submission Information

IV.1. Address to Request Application Package

IV.2. Content and Form of Application Submission

Required Forms, Assurances, and Certifications

The Project Description

The Project Budget and Budget Justification

Application Submission Options

IV.3. Unique Entity Identifier (UEI) and System for Award Management (SAM)

IV.4. Submission Dates and Times

Explanation of Due Dates

Acknowledgement of Received Application

IV.5. Intergovernmental Review

IV.6. Funding Restrictions

IV.7. Other Submission Requirements

V. Application Review Information

V.1. Criteria

V.2. Review and Selection Process

V.3. Anticipated Announcement and Federal Award Dates

VI. Federal Award Administration Information

VI.1. Federal Award Notices

VI.2. Administrative and National Policy Requirements

VI.3. Reporting

VII. HHS Award Agency Contact(s)

VIII. Other Information

Reference Websites

Application Checklist

Appendix

Funding Opportunity Title:

Community Economic Development Focus on Energy Communities Announcement Type:

Modification Funding Opportunity Number:

HHS-2022-ACF-OCS-EE-0081

Primary CFDA Number:

93.570 Due Date for Applications:

05/17/2023 Due Date for Applications:

FY 2024: April 22, 2024

Executive Summary

Notice:

Applicants are strongly encouraged to read the entire notice of funding opportunity (NOFO) carefully and observe the application formatting requirements listed in Section IV.2. Content and Form of Application Submission. For more information on applying for grants, please visit "How to Apply for a Grant" on the ACF Grants & Funding Page at https://www.acf.hhs.gov/grants/how-apply-grant.

For fiscal year (FY) 2023, the Administration for Children and Families (ACF), Office of Community Services (OCS) will award approximately $3.2 million in Community Economic Development (CED) discretionary grant funds to Community Development Corporations (CDCs) for CED projects that will be located in and serve energy communities – communities that have either experienced employment loss and /or economic dislocation events as a result of declines in the fossil fuel industry and/or are disproportionately reliant on fossil fuel energy production or distribution, including coal, oil, gas, and power plant communities across the country. Projects may include the creation or expansion of business(es) that reduce emissions of toxic substances and greenhouse gases from existing and abandoned infrastructure and that prevent environmental damage that harms communities and poses a risk to public health and safety. Projects may also employ individuals from energy communities but focus on a range of other industries. The overall goal of this effort will be to create good-paying jobs, spur economic revitalization, remediate environmental degradation, and support energy workers. Further, these grants will be made as part of a broader strategy to address objectives such as decreasing dependency on federal programs, chronic unemployment, and community deterioration in urban and rural areas.

The objective of this program is to support businesses that develop new products, services, and commercial activities that result in new positions for individuals with low incomes. CED projects are expected to actively recruit individuals with low incomes to fill the positions created by https://www.acf.hhs.gov/grants/how-apply-grant

CED-funded development activities, to assist those individuals in successfully maintaining employment, and to ensure that the businesses and jobs created remain viable for at least 1 year after the end of the grant period. CED-funded projects can be non-construction or construction projects; however, short-term construction jobs associated with preparing for business startup or expansion are not counted when determining the number of jobs created under the CED program as they are designed to be temporary.

This is a standing NOFO. It will be effective until canceled or changed by the Director of OCS.

I. Program Description

Statutory Authority This program is authorized by section 680(a)(2) of the CSBG Act, as amended, 42 U.S.C.

9921(a)(2).

The CED authority for construction and renovation is through annual appropriations, and the most recent language is located at division H, title II of the Consolidated Appropriations Act, 2023, Public Law 117-328.

Description The CED program recognizes that non-profit CDCs know their communities and can efficiently and effectively create new CED projects that are culturally appropriate and promote equity in their communities.

The objective of the program is to support businesses that develop new products, services, and commercial activities that result in the creation of new positions for individuals with low incomes. These projects should include the following key elements:

Be ready to implement at the time of award;

Lead to increased self-sufficiency for individuals and families with low incomes;

Create businesses and jobs in low-income communities that improve the livelihood of not only those who obtain those jobs but also the community itself;

Attract additional public and private funds to increase investment and quality of life in low-income communities; and Promote equitable outcomes for underserved communities (see “Equity” in the Definition of Terms found later in this section), Community buy-in is a critical aspect of the CED program as it helps to ensure that there is continued community support for the project, which will lead to sustained success of the project beyond the CED project period. To secure community buy-in and ensure that CDCs are effectively addressing the needs of their communities, it is critical that the Board of Directors for the governing organization include representation from the community in which the proposed project will be located. See Section III.1. Eligible Applicants.

SUPPORTING ENERGY COMMUNITIES

Aligned with President Biden's Executive Order 14008: Tracking the Climate Crisis at Home and Abroad and the Justice40 initiative, the CED program is supporting efforts to empower workers by revitalizing energy communities. Energy communities are communities that have experienced employment loss and/or economic dislocation events because of declines in the fossil fuel industry and/or are disproportionately reliant on fossil fuel energy production or distribution, including coal, oil, gas, and power plant communities across the country.

As stated in Executive Order 14008, “Mining and power plant workers drove the industrial revolution and the economic growth that followed, and have been essential to the growth of the United States.” Communities that have historically relied on mining and power plants have experienced steep declines over the last 50 years due to research and technological advances.

This has displaced many workers and left entire communities with fewer quality job opportunities. The decline and closure of a factory or mine in a small community often meant disinvestment in and the slow decline of all businesses in that community. With the effects of the global pandemic still looming strong, these workers and communities have even fewer quality job opportunities. Investment in local businesses and the creation of high-quality jobs in these communities are critical to providing meaningful economic revitalization that allows individuals and families to achieve economic self-sufficiency.

Under this funding opportunity, the CED program will fund projects that will be located in and serve energy communities. One hundred percent of the projects funded will be located in disadvantaged communities. Projects may include the creation or expansion of business(es) that reduce emissions of toxic substances and greenhouse gases from existing and abandoned infrastructure and that prevent environmental damage that harms communities and poses a risk to public health and safety. Projects may also employ individuals from energy communities but focus on a range of other industries. The overall goal of this effort will be to create good-paying jobs, spur economic revitalization, remediate environmental degradation, and support energy workers. Further, these grants will be made as part of a broader strategy to address objectives such as decreasing dependency on federal programs, chronic unemployment, and community deterioration in urban and rural areas.

As indicated in Section V.1. Criteria, bonus points will be awarded to applications that include documentation demonstrating that the proposed project is aligned with Executive Order 14008 and the Justice40 initiative.

NON-CONSTRUCTION PROJECTS

CED-funded projects can be non-construction projects that are ready to be implemented at the time of the grant award and completed during the assigned project period. The grant period for non-construction projects is 3 years. It is expected that all participating business expansion/creation and job creation for non-construction projects is completed and CED funds are expended within the 3-year project period. Changes in direction in the final year of a project are discouraged. Applicants distinguish projects that are ready to implement at the time of award by providing evidence such as lending guidelines, unsigned sample loan agreements, commitment from identified participating businesses, etc., in the application.

Non-construction projects involve limited alteration or renovation, costing less than $250,000, to support participating business creation and/or expansion and job creation. Non-construction projects typically involve a loan(s) or equity investment(s) in participating business(es).

Business plans for CED projects that demonstrate they are ready to implement must include a realistic project plan with the following key elements:

1. A timeline that clearly demonstrates that the proposed project will be completed and all CED funding expended within the proposed grant.

2. A plan demonstrating that CED funds will be managed consistently with applicable federal regulations, including 45 CFR §75.302 (Financial management and standards for financial management systems) and 75.322 (Intangible property and copyrights), whereas recipients must have control over and accountability for all funds, property, and other assets.

3. A proposal demonstrating how recipients will support participating business creation/expansion and job creation.

Note: When the applicant proposes to loan or invest money in a third-party participating business and this participating business is the property owner of record on any property purchased with such funds, the applicant’s ownership interest is in the note on the debt instrument or other security, rather than in the property itself. As such, the federal interest is in the debt instrument or security, and as intangible property, the federal interest in such property is subject to the 12-year rule set forth in annual appropriations law (see, e.g., the Consolidated Appropriations Act, 2023, Public Law 117-328).

Applicants proposing non-construction projects must propose to create at least a minimum number of jobs using the following formula:

[Total Amount of Federal CED Funds Awarded] divided by [$25,000] = [Minimum Number of Jobs to be Created].

For example, if a recipient is awarded $800,000 in federal CED funds, it must use that money to conduct activities that will create at least 32 jobs ($800,000 ÷ $25,000 = 32). For a table with examples of the minimum number of jobs based on specific award amounts, see Appendix A:

Sample Chart of Cost per Job Created at the end of this NOFO. Note: An applicant’s score will not increase by proposing jobs above the required minimum.

CONSTRUCTION PROJECTS

CED-funded projects can be construction projects that are ready to be implemented at the time of the grant award and completed during the assigned project period. The grant period for construction projects is 4 years. It is expected that all participating business expansion/creation and job creation for construction projects be completed and CED funds expended within the 4-year grant period. Changes in direction in the final year of a project are discouraged.

Construction projects involve construction or renovation. For more information, see the Definition of Terms found later in this section and ACF Property Glossary page and related real property pages under the ACF Property Guidance. Construction projects typically include commercial real estate for lease or use by the gamut of small and large-scale business operations.

The CED program permits facility construction, as needed, to support participating business https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property#book_content_10 https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property creation, expansion, and/or job creation.

Business plans for CED construction projects must include a realistic project plan with the following key elements:

1. A timeline that clearly demonstrates that the proposed construction project will be completed and all CED funding expended within the proposed grant period.

2. A plan demonstrating that CED funds will be managed consistently with applicable federal regulations, including 45 CFR §75.302, 75.316, 75.317, 75.318, 75.320, 75.322, and 75.343, whereas recipients must have control over and accountability for all funds, property, and other assets.

3. A proposal demonstrating how recipients will use the property for the originally authorized purpose and will not encumber the property without prior approval from ACF.

Please note that any encumbrance, (e.g., new financing, refinancing, or extensions of existing loans) with or without a subordination, requires deviation prior approval by the ACF Chief Grants Management Officer before federal funds are used for these purposes.

This may delay the facility project.

4. Evidence that recipients are ready to begin construction upon award, including contracts or other third-party agreements with parties involved in the construction.

5. A proposal demonstrating how recipients will support participating business creation/expansion and job creation as a result of the completed construction.

Applicants proposing construction projects must propose to create at least a minimum number of jobs using the following formula:

[Total Amount of Federal CED Funds Awarded] divided by [$30,000] = [Minimum Number of Jobs to be Created].

For example, if a recipient is awarded $800,000 in federal CED funds, it must use that money to conduct activities that will create at least 27 jobs ($800,000 ÷ $30,000 = 27). For a table with examples of the minimum number of jobs based on specific award amounts, see Appendix A:

Sample Chart of Cost per Job Created at the end of this NOFO. Note: An applicant’s score will not increase by proposing jobs above the required minimum.

Note: Per language in the FY 2023 Consolidated Appropriations Act (Public Law 117-328), in instances where the applicant proposes to loan money or have an equity investment in a third-party participating business, the applicant owns the note on the intangible property, not the real property itself. The third-party participating business is the property owner of record. As such, the federal interest is in the debt instrument, as intangible property and not the property. The intangible property is subject to the 12-year rule set forth in the appropriations language.

See Intangible Property for additional details. Any CED project with construction activities, regardless of whether the property is owned by the recipient or participating business, will be considered a construction project and granted a 48-month project period. However, prospective applicants are urged to read the federal requirements related to "real property" carefully, as those only apply to projects where the recipient owns the property. For ACF property-related policy and guidance, please refer to the ACF website at https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property. Also, to determine how real property requirements apply to

CED projects please refer to https://www.acf.hhs.gov/ocs/policy-guidance/ced-acf-real-property-g.uidance-what-does-it-mean-my-ced-grant.

It is important to note that short-term construction jobs associated with preparing for participating business start-ups or expansion are not counted when determining the number of jobs created under the CED program, as they are designed to be temporary.

All environmental and historic preservation requirements must be fulfilled before award, or before allowing drawdown of funds. For more information, please see Section VI.2.

Administrative and National Policy Requirements, National Environmental Policy Act.

GENERAL PROGRAM ELEMENTS

CED funds are flexible and can be used in many ways to support the creation or expansion of businesses that ultimately result in the creation of new permanent, full-time, full-year jobs. For the purposes of this funding opportunity, CED funds will only be awarded to projects that will be located in, and serve, energy communities.

While the focus of the program is on the creation of jobs for individuals with low incomes, as defined by the poverty guidelines published annually by the U.S. Department of Health & Human Services (HHS) at https://aspe.hhs.gov/poverty-guidelines, ACF does not expect that 100 percent of the created jobs will necessarily be filled by individuals with low incomes. Often when a business is created or expanded, there is a need to hire high-level managers or other content experts with unique skills and/or experiences that may be more difficult to identify and recruit. For this reason, ACF only requires that a minimum of 75 percent of the newly created jobs be filled by individuals with low incomes.

Jobs created through the CED program are intended to be high-quality jobs that provide living wages, paid leave, fringe benefits, opportunities for career growth, and/or predictable and flexible scheduling practices to allow individuals to achieve economic self-sufficiency and promote equity. In addition to creating new jobs, all funded recipients are expected to develop and implement a plan to connect employees to critical wraparound support services, such as financial literacy assistance, childcare, transportation, substance use disorder treatment, and English language education, to remove barriers to employment and allow individuals to maintain long-term employment. Note: ACF defines “low income,” for purposes of this grant, as an individual whose household income level does not exceed 200 percent of the official poverty guidelines, as found in the most recent revision of the HHS Poverty Guidelines published by HHS at https://aspe.hhs.gov/poverty-guidelines.

ELIGIBLE ACTIVITIES

CED funds may be used for the start-up or expansion activities of participating businesses, as consistent with the cost principles, as implemented in 45 CFR Part 75, Subpart E, provided that the expenditures result in the creation of new positions that can be filled with individuals with low incomes. This includes the following:

https://www.acf.hhs.gov/ocs/policy-guidance/ced-acf-real-property-guidance-what-does-it-mean-my-ced-grant https://www.acf.hhs.gov/ocs/policy-guidance/ced-acf-real-property-guidance-what-does-it-mean-my-ced-grant https://aspe.hhs.gov/poverty-guidelines https://aspe.hhs.gov/poverty-guidelines

Start-up capital for operating expenses, such as salaries, facilities, and equipment that will be replaced by projected earnings;

Loans to identified, viable, participating businesses;

Equity or stock investment in identified, viable, participating businesses; and/or Funding for construction. For more information, please see Construction Projects earlier in this section.

CED projects may utilize multiple strategies as long as they result in the creation of full-time positions. See Definition of Terms for more details about each of the referenced strategies.

The training and placement of individuals in positions existing prior to the start of the project, even positions guaranteed to individuals with low incomes through a formal agreement with an employer, is not considered job creation.

Limited incubator development is allowable, as long as the applicant demonstrates the incubator will support participating businesses that demonstrate the financial capacity to create the agreed-upon jobs for individuals with low incomes within the proposed geographic location. For more information about an incubator, see Definition of Terms found later in this section.

INELIGIBLE ACTIVITIES

CED grant funds may not be used for the following purposes:

Projects that include the reimbursement of pre-award costs.

Projects that provide subawards/pass-throughs.

Projects that use funding to capitalize loan loss reserve funds.

Projects that use funds for loan(s) with balloon payments.

Projects that use CED funding to provide loan(s) where repayment of all loans funded with CED funds does not begin during the course of the funded project period.

Projects that create or expand microenterprise business training and technical assistance centers.

Projects that focus primarily on job training, job placement, and technical assistance.

Limited job training and job placement activities can only be supported in the context of training that is provided specifically for the new positions created. For example, funds can be used to train a cashier for a specific position that has been created with CED funds but cannot be used to operate a general job training and placement program.

Projects that do not create new jobs that did not exist prior to the proposed CED project.

Projects that are not located in or serve an energy community.

FEDERAL EVALUATION

ACF plans to implement a federally sponsored evaluation strategy to assess the success of approved CED projects. As such, grant funds awarded to CDCs should not be used to support external evaluations.

The federal evaluation strategy will include recipient-level documentation of activities, outputs, and outcomes. As a condition of acceptance of a grant award, all funded recipients are required to agree to participate fully in federal evaluations, if selected, and to follow all evaluation protocols established by ACF or its designee contractor. Fully participating in a federal evaluation may include (but is not limited to) supporting and complying with special data collection requirements; providing additional administrative data on program participation or service receipt; facilitating on-site meetings and observations, including interviews with program and partner managers and staff as well as participants; and incorporating planned variation into program strategies.

Recipients selected to be in a federal evaluation will receive technical assistance and other support in meeting evaluation requirements. Recipients included in a federal evaluation must also meet regular grant reporting requirements specified in this funding opportunity (see Section 3. Reporting).

NOTE: Consistent with the Paperwork Reduction Act (PRA) of 1995, (44 U.S.C. 3501-3521), under this NOFO, OCS will not conduct or sponsor–and a person is not required to respond to–a collection of information covered by such Act, unless it displays a currently valid Office of Management and Budget (OMB) control number.

If necessary, OCS will seek approval for information collections related to the federal evaluation through the OMB Office of Information and Regulatory Affairs and will not request information for the federal evaluation that is subject to PRA until the information collection is approved.

DEFINITION OF TERMS

The following definitions apply throughout this NOFO, and applicants are strongly encouraged to review these carefully prior to submitting an application. For real property related terms (e.g., Alteration and Renovation (A&R), capital expenditure, construction, etc.), please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

A&R-Please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

Balloon Payment-A large loan payment agreed upon by the parties and due at the end of a mortgage, commercial loan, or other amortized loan. The balloon payment is not amortized over the life of the loan, and the remaining balance is the final repayment to the lender. Note: As noted in the definition of “loan,” repayment of all loans funded with CED funds must begin during the course of the funded project period and balloon payments are not allowed.

Board Approval-For the purposes of this NOFO, “board approval” is a document authorizing the approval of the proposed project by the Board of Directors in order to ensure the goals and objectives of projects are community-driven and in accordance with community-prioritized needs for job creation. This could be demonstrated through a board resolution, meeting notes, or other written documentation that records the decisions or actions of a CDC Board of Directors.

Board Resolution- Written document demonstrating decisions or actions of a CDC Board of Directors as recorded in the minutes of the organization. For the purpose of the NOFO, a document proving the authorization of the submission of the CED application to ensure the goals and objectives of projects are community-driven and in accordance with community-prioritized needs for job creation and submitted on behalf of the CDC.

https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property#book_content_10 https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property#book_content_10 https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property#book_content_10

Budget Period-Projects under CED awards are not divided into the typical 12-month intervals known as “budget periods.” All CED projects have only a single budget period that is equal in length to the project period.

Community-Any geographic area defined by specific boundaries and the residents, businesses, and institutions within that geographical area.

Community Barriers-Conditions in a community that impede success in employment or self-employment of individuals with low incomes. Such conditions may include the following: lack of employment education and training programs; lack of public transportation; lack of markets;

unavailability of financing, insurance, or bonding; inadequate social services, such as employment services, child care, or job training; high incidence of crime; high incidence of substance use disorder; inadequate healthcare; or environmental hazards, such as toxic dumpsites or leaking underground tanks.

CDC-In accordance with section 680(a)(2) of the CSBG Act, 42 U.S.C. 9921(a)(2), to be a qualified CDC, an organization must meet the following three conditions:

The organization must be a private non-profit with 501(c)(3) status;

The organization must have articles of incorporation or bylaws demonstrating that the

CDC has, as a principal purpose of planning, developing, or managing low-income housing or community development projects; and

The Board of Directors of the organization must have representation from community residents, business leaders, and civic leaders.

Note: CDC designation does not need to be specified on any official documents as long as the three requirements stated earlier in this definition are met.

CED-A process by which a community organizes its resources and capacities to attract capital to invest in physical, commercial, and business development in order to create job opportunities for its residents.

Construction-Please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

Contract-A legal instrument by which a recipient purchases goods, services, or property needed to carry out the project or program under the CED grant award. The term as used here does not include a legal instrument, even if the non-federal entity considers it a contract, because the substance of the transaction meets the definition of a “grant award” or “subaward” (see Subaward).

Debt Instruments-Any financial documents that enable the issuing party to raise funds by promising to repay a lender in accordance with the terms of a contract. Types of debt instruments include notes, bonds, certificates, mortgages, leases, or other agreements between a lender and a borrower.

Earnings-The net income of the participating business, which is the difference between its revenues, costs, and expenses, as shown on the profit and loss statement.

Employment Education and Training Program-A program that provides employment-directed education and/or training to individuals with low incomes, including Temporary Assistance for Needy Families (TANF) recipients, at-risk youth, public housing residents, displaced workers, persons who are homeless, and other individuals with low incomes.

Energy Community-Communities that have experienced employment loss and/or economic dislocation events because of declines in the fossil fuel industry and/or are disproportionately reliant on fossil fuel energy production or distribution, including coal, oil, gas, and power plant communities.

Equity-The consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, Indigenous and Native American persons, Asian Americans and Pacific Islanders, and other persons of color; members of religious minorities; Lesbian, Gay, Bisexual, Transgender, and Queer persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

Equity Investment-The provision of capital to an identified for-profit participating business entity for a specified purpose in return for a share of ownership evidenced by a formal equity investment agreement. This may involve the issuance of stock, as in an equity stock investment.

An equity investment may be either in a subsidiary for-profit corporation of the applicant or in an unaffiliated business.

Federal Interest-Please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

Financial Feasibility/Viability-The component of the business plan demonstrating the financial ability of the recipient to achieve the project’s goals of creating permanent, full-time jobs for individuals with low incomes over the project period. Financial feasibility/viability is usually demonstrated using the following types of documentation: profit and loss forecasts or pro forma, cash flow projections, balance sheets, and sources and uses of funds statements. Financially feasible/viable projects identify and explain earnings, fees, or other sources of revenues sufficient to provide for business operation and maintenance, a reasonable reserve, and all expenses for proposed job creation.

Financial Literacy Services-Delivery of information and tools that helps individuals make informed choices about their personal finances. Such services typically focus on budgeting, credit, savings, and other matters relating to a household’s financial well-being.

Full-Time, Full-Year Position-A nonseasonal position requiring at least 30 hours of work per week. An aggregation of part-time positions to a full-time equivalent is not considered a full-time position.

Grant Award-The funding made available to an eligible organization after a competitive grant application process.

Grant Terms and Conditions-A statement of HHS and ACF regulations and policies, pursuant to federal law, that is attached to the Notice of Grant Award and that sets forth the standard terms and conditions with which recipients are required to comply.

Incubator-A program to help start-up participating businesses flourish by providing support, resources, and business services and advice, normally in one physical location. Incubators that are established without a geographic location in the community are not supported by this funding opportunity. Further, for the purposes of this funding opportunity, limited incubator development is allowable as long as the applicant demonstrates the incubator will support participating businesses that demonstrate the financial capacity to create the agreed-upon jobs for individuals with low incomes within the proposed geographic location.

Indirect Costs-Costs incurred for a common or joint purpose benefitting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved.

In-Kind Contributions-These contributions may be in the form of real property, equipment, supplies, and/or other expendable property, or goods and services provided by non-governmental sources directly benefiting and specifically allocated to the project.

Intangible Property–As defined by 45 CFR § 75.2, intangible property means “property having no physical existence, such as trademarks, copyrights, patents and patent applications, and property, such as loans, notes, and other debt instruments, lease agreements, stock, and other instruments of property ownership (whether the property is tangible or intangible).”

Intervention-Any planned activity within a project that is intended to reduce personal barriers or community barriers to employment and can be formally evaluated. For example, job readiness training is an intervention.

Job Creation-New full-time, full-year positions for the project that did not exist prior to the start of the project and came about as a direct result of the investment of OCS funds in project activities, such as the development of new business ventures, the expansion of existing participating businesses, or the development of new products and services. Note: This includes the recreation or restoration of full-time, full-year positions that were lost due to the COVID-19 pandemic. The training and placement of individuals in positions existing prior to the start of the project, even positions guaranteed to individuals with low incomes through a formal agreement with an employer, is not considered job creation.

Job Placement-Placing an individual in an existing vacant job of a business, service, or commercial activity not related to new development or expansion activity. All jobs supported by the project must meet the definition of new job creation, not job placement. Note: CED funds cannot be used solely for job placement, but limited job placement activities are permitted only in the context of filling the newly created positions with employees.

Job Training-For the purposes of this funding opportunity, “training” refers to group-based adult education and skill-building activities (e.g., workshops). It does not include consultations or technical assistance that is specifically customized or tailored to the needs of a particular business identified in the project. Note: CED funds cannot be used primarily for training, but limited job training activities can be supported only in the context of training that may be provided specifically to employees to fill the new positions created.

Less-Than-Arm’s-Length-Please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

Letters of Support-A signed letter that describes an endorsement of the project from a local or regional government agency or community organization. The letter should describe any specific relationship the agency or organization has with the applicant, knowledge of the applicant’s experience and qualifications in business and job creation, and any in-kind or financial contributions to the project, if applicable.

Loan-Money provided to finance an eligible participating business borrower evidenced by a promissory note and loan agreement for a specified purpose to be repaid with a stated rate of interest and within a specified period. Loans made to eligible participating businesses must be at or below market rate (or what commercial lenders would offer). This includes a distinct loan fund established exclusively for CED projects as a resource for loans to finance eligible business development and operational activities and, when the principal is repaid, is used to make new loans that support a similar purpose. In all instances, the first borrower must be identified along with the standards used for selection. Interest accrued on CED funds must be used to continue or expand the activities of the approved project. See also Federal Interest. Repayment of all loans funded with CED funds must begin during the course of the funded project period and a balloon payment is not allowed. No portion of a loan is forgivable.

Low-Income–ACF defines "low-income" as an individual whose household income level does not exceed 200 percent of the official poverty guidelines as found in the recent revision of the

HHS Poverty Guidelines published by HHS.

Major Renovation (A&R)-Please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

Minor Renovation (A&R) - Please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

Microenterprise-A commercial participating business with five or fewer employees, at least one of whom is the owner.

More Experienced Partner-A project partner that successfully meets all of the following requirements: is a CDC, has completed two or more CED projects, has completed one or more projects involving activities similar to the proposed project, and has experience with collaborative programming.

Need for Assistance-Physical, economic, social, financial, institutional, and/or other problem(s) requiring a solution.

Non-Profit Organization-Any 501(c)(3) organization, (corporation, trust, association, cooperative, or other organization) not including institutions of higher education, that (1) is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; (2) is not organized primarily for profit; and (3) uses its net proceeds to maintain, improve, and/or expand its operations. For this purpose, the term “non-profit organization” excludes colleges and universities; hospitals; state, local, and federally recognized Indian tribal governments; and those non-profit organizations listed in Appendix VIII to 45 CFR Part 75– Non-Profit Organizations Exempt from Subpart E of Part 75.

Notice of Federal Interest-A notice of public record that a recipient must file if it directly expends federal grant funds for acquisition, construction, or major alteration and renovation of real property. See also Federal Interest.

Notice of Award (NOA)-A legal document given to the intended organization that indicates that an award has been made and that funds may be requested from the designated HHS payment system or office. The notice of grant award shows the amount of federal funds authorized for obligation and the budget period for the approved project. Recipients will find this information helpful because it outlines the conditions of their grant awards.

Participating Business-A business that has been identified as a CED project participant with a signed a third-party agreement with the CED applicant to create new, full-time, full-year jobs, at least 75 percent of which will be filled by individuals with low incomes. Proposed jobs are specifically identified in the third-party agreement.

Persistent Poverty County-A county in which 20 percent or more of the population has lived in poverty over the past 30 years according to the U.S. Census, as determined by the Economic Research Service of the U.S. Department of Agriculture.

Personal Barriers-Those aspects of an individual’s personal situation that may impede success in obtaining and retaining employment. Barriers may include factors such as limited education, substance use disorder, insufficient life skills, criminal history, health problems, or disability.

Profit and Loss Statement-Financial report summarizing participating business revenues, expenses, and net income over a specified period of time.

Project-The scope of OCS activities described in the application for federal grant funds pursuant to this funding opportunity.

Project Partner-Any individual, organization, or business entity participating in the project that is not the direct recipient of CED grant funds. Typical project partners include the following:

equity investors, donors, a more experienced partner, a wholly owned subsidiary, or a business https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property#book_content_10 https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property entity to which the recipient makes a loan or equity investment in support of grant purposes. Note: CED recipients must play a substantive role in the project. A recipient working with a project partner must actively monitor the project and ensure compliance with CED program requirements.

Project Period-The time during which the recipient may incur new obligations to carry out the work authorized under the federal award. For the CED program, non-construction projects will have a 3-year project period. Projects that involve construction will have a 4-year project period.

Real Property-Please see the ACF Property Glossary page and related real property pages under the ACF Property Guidance.

Rural Community-A “metro area” contains a core urban area of 50,000 or more population, and a “micro area” contains an urban core of at least 10,000 (but less than 50,000) population. All counties that are not part of a Metropolitan Statistical Area are considered rural. Micropolitan counties are considered non-metropolitan, or rural, along with all counties that are classified as neither. For more information on metro areas, see https://www.census.gov/programs-surveys/metro-micro/about.html. Note: For purposes of this NOFO, bonus points will be awarded to projects that will create jobs in a rural community with a high rate of poverty, unemployment, or substance use disorder (as defined by OMB) or hire individuals with low incomes from a rural community to fill positions created. OMB designates counties as metropolitan, micropolitan, or neither. See also Section V.1. Criteria.

Self-Employment-The employment status of an individual who owns and operates a for-profit business.

Self-Sufficiency-A state of being or status of an individual or family where, by reason of employment, eligibility for public assistance is replaced by the financial capacity to meet all basic needs.

Service Area-The community to be served by the funded project.

Site Control-Documented proof of the applicant’s ownership or control of the property where grant activities will be conducted. Proof of site control includes the following types of documentation: documentation of the specific property location (address, city, state);

documentation of a signed and dated deed or lease agreement between the applicant and property owner; or, documentation in the agreement of the terms of the agreement, use of premises, and description of the site (prior use or new property, square footage, use of space for the project).

Social Service Provider-Agencies and/or organizations that work with low-income individuals and can assist a grant recipient in filling the newly created positions with individuals with low incomes. Examples of social service providers include TANF, employment education and training programs (e.g., the Department of Labor’s Employment and Training Administration— funded one-stop career centers), and local child support enforcement agencies. These partnerships should be documented with signed third-party agreements, such as memorandums of understanding (MOUs), letters of commitment, or project partner agreements.

Sources and Uses of Funds Statement-A statement that identifies the committed sources of debt and equity financing and the specific categories of uses of funds associated with each of the sources for the project.

Stock-A share of ownership in a for-profit company. Stocks are sold to investors by a for- profit corporation to raise capital for the start-up and/or expansion of the business. Stock purchases by the recipient are equity investments. Such investments may be made by recipients in affiliated and non-affiliated businesses.

Subaward-A subaward (also known as a “pass-through”) is an award of financial assistance in https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property#book_content_10 https://www.acf.hhs.gov/grants/real-property-and-tangible-personal-property https://www.census.gov/programs-surveys/metro-micro/about.html https://www.census.gov/programs-surveys/metro-micro/about.html the form of money, or property in lieu of money, made under an award by a recipient to an eligible subrecipient, or by a subrecipient, to a lower tier subrecipient. The term includes financial assistance when provided by any legal agreement but does not include procurement of goods and services, nor does it include any form of assistance that is excluded from the definition of “award” in this section. For more information, see 45 CFR § 75.351. Note:

Subawards are not permitted under this NOFO. Equity investments and loan transactions are not subawards, these qualify as intangible property.

Substance Use Disorder-This disorder occurs when the recurrent use of alcohol and/or drugs causes clinically and functionally significant impairment, such as health problems, disability, and failure to meet major responsibilities at work, school, or home.

Support Services-For the purpose of this NOFO, services provided to the target population that support and complement efforts to obtain economic self-sufficiency. This may include social supports, such as financial literacy training, child care, transportation, substance use disorder treatment, English language education, or job training.

Technical Assistance-A problem-solving service generally using the services of a specialist and specifically customized or tailored to the needs of a particular organization. Such services may be provided on-site, by telephone, or by other means of communication.

Third-Party Agreement-Written agreements between recipients and social service providers, subcontractors, project partners, participating businesses, or other cooperating entities. These agreements must detail the scope of work to be performed, work schedules, remuneration, and other terms and conditions that structure or define the relationship. No agreement can be a subaward for CED funds. Third-party agreements in which the third-party organization is committing resources or partner support must be signed by a person in the third-party organization with the authority to make such commitments on behalf of their organization.

Third-party agreements committing CED funds contingent upon award in the form of loans or equity investments to participating businesses can be in draft form. The following are examples of common types of third-party agreements for CED projects.

Commitment Letter-A signed letter of commitment that describes the level of financial support for the project made by a third-party (e.g., a lender, investor, donor, or other grantor).

Such commitment letters are required if the applicant proposes a project for which non-CED funds (e.g., loans, municipal, federal or state tax credits, equity stock investments, etc.) will be required in order to successfully create the proposed jobs and create and/or expand the proposed business(es). Commitment letters must be signed, specific, and conditioned only on the receipt of the grant award.

Equity Investment Agreement-A written, draft agreement that documents a capital investment by a recipient in a participating business to achieve the purposes of the project as defined in the application. The agreement sets forth the recipient’s share of ownership in the business, the terms and conditions related to the use of the invested funds, the rights of the recipient as an equity owner, including, if the business is a corporation, representation on the board of directors, and any provisions for liquidation of the investment. The agreement does not need to be signed, but must include the elements outlined in Section IV.2. Content and Form of Application Submission, The Project Description, Business Plan–Project Implementation. Additionally, the applicant must indicate that copies of executed (signed) agreements will be submitted to ACF upon establishing such investments with program participants.

Loan Agreement - A written, draft agreement that documents financing an eligible participating business borrower for a specified purpose to be repaid, with a stated rate of interest and within a specified period. The agreement sets forth the terms of the loan. The agreement does not need to be signed in the application, but must include the elements outlined in Section IV.2. Content and Form of Application Submission, The Project Description, Business Plan – Project Implementation. Additionally, the applicant must indicate that copies of executed (signed) agreements will be submitted to ACF upon establishing such investments with program participants.

Project Partner Agreement-A written agreement entered into by the recipient and project partners, such as a more experienced partner or social service providers that will indirectly spend CED funds and/or create new full-time, full-year positions and/or play another role to help the…