Community Services Block Grant Discretionary Awards

CED and RCD are two funding opportunities in this program with a focus on development of communities with low income. CED is the only federal opportunity that primarily focuses on creating jobs for individuals with low income in communities with high

The Community Services Block Grant Discretionary Awards program includes three funding opportunities that support development of communities with low income: Community Economic Development (CED), Rural Community Development (RCD) and the Neighborhood Innovation Projects (NIP). On an annual basis, Congress has only provided appropriations to CED and RCD. NIP has never received funding. CED provides awards on a competitive basis to private, nonprofit organizations that are community development corporations (CDCs). CDCs use CED funds to provide technical and financial assistance for economic development activities that address the economic needs of individuals and families with low income through the creation of sustainable business development and employment opportunities. CED funds are used to enable businesses to create new, full-time permanent jobs for individuals with low incomes through commercial development and financial equity investments, or through loans to capitalize a new business or expand an existing business. CED allows CDCs to customize investment and business development to the needs of their communities. Seventy-five percent of the jobs created must be filled by individuals that are below 200% of HHS poverty guidelines. RCD provides awards to regional multistate and tribal nonprofit organizations that provide training and technical assistance to small, rural communities for the improvement of drinking water and wastewater systems. RCD helps community members identify and address water and wastewater related issues, including infrastructure and accessibility needs; increases access for families with low incomes to water supply and waste disposal services; preserves affordable water and waste disposal services in low-income rural communities; trains water operators to ensure water systems comply with federal regulations; increases local capacity and expertise to establish and maintain needed water facilities; increases economic opportunities for low-income rural communities by ensuring they have basic water and sanitation; utilizes technical assistance to leverage additional public and private resources; promotes improved coordination of federal, state, and local agencies and financing programs to benefit low-income communities; and helps communities establish financial stability and financial reserves to maintain water delivery and wastewater disposal systems.

For each CED award, eligibility is restricted to private, nonprofit organizations that are community development corporations (CDCs) that 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. For a CDC to receive funds to carry out CED activities, the corporation shall be governed by a board that shall consist of residents of the community and business and civic leaders and shall have as a principal purpose planning, developing, or managing low-income housing or community development projects. Under RCD, eligibility is restricted to multi-state, regional, private, nonprofit organizations, including those that support tribal entities, with the ability to enable the organizations to provide training and technical assistance to small, rural communities concerning meeting their community facility needs. Applications from individuals (including sole proprietorships) and foreign entities are not eligible and will be disqualified from competitive review and funding under all funding opportunities. Faith-based and community organizations that meet the eligibility requirements are eligible to receive awards under this funding opportunity.

For CED: the beneficiaries are individuals, families, and unemployed individuals with low Income. Seventy-five percent of the jobs created must be filled by individuals 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. For RCD: the beneficiaries are small, rural communities that face unique challenges in managing their water and wastewater systems and lack the resources and technical skills to address very small water and wastewater system needs.

CED awards cover project costs for (1) startup or expansion of business, physical improvements, or commercial activities; (2) capital expenditures such as the purchase of equipment or real property; (3) allowable operating expenses; and (4) loans or financial equity investments. Award expenditures must result in three basic pillars: (1) The creation of new high-quality, permanent, full-time jobs for individuals with low incomes; (2) Provision of support to individuals that address barriers to employment by providing wraparound services that focus on the needs of the individuals with low incomes hired into jobs created through CED; and (3) Promotion of community revitalization and equitable support by infusing funding into underserved communities to create economic development. RCD funds are used to provide training and technical assistance to: help community members identify and address water and wastewater related issues, including infrastructure and accessibility needs; increase access for families with low incomes to water supply and waste disposal services; preserve affordable water and waste disposal services in low-income rural communities; train water operators to ensure water systems comply with federal regulations; increase local capacity and expertise to establish and maintain needed water facilities; increase economic opportunities for low-income rural communities by ensuring they have basic water and sanitation; utilize technical assistance to leverage additional public and private resources; promote improved coordination of federal, state, and local agencies and financing programs to benefit low-income communities; and help communities establish financial stability and financial reserves to maintain water delivery and wastewater disposal systems. RCD awards cover these training and technical assistance activities. All CED and RCD awards are funded using available discretionary funding.

RCD funds cannot be used for infrastructure activities.

CED financial assistance awards are made available for periods of 36 to 48 months. This is the time during which the recipient obligates funding to carry out the work authorized under the federal award. CED projects are fully funded at the time of award and do not have non-competing continuations. The RCD financial assistance awards have a 60-month project period with five 12- month budget periods. Non-competing continuations will be issued based on availability of funds, satisfactory progress, compliance with terms and conditions and a determination that continuation funding is in the best interest of the federal government. Method of awarding/releasing assistance: Post award, the Division of Payment Management will establish an account from which a recipient may draw down award funds. Recipients draw down their approved awards according to their approved budget plans.

Preapplication coordination is required. An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

The criteria for selecting proposals will be published in the NOFO.

Each application is reviewed against four factors: eligibility, the application deadline, required electronic submission or waiver requested and approved, and the Award Ceiling. If the application does not meet all of these factors, then it is disqualified from the merit review process. After the initial review, applications are reviewed and evaluated by merit review panels using only the criteria described in the Application Review section of the NOFO. Each panel is composed of experts with knowledge and experience in the area under review. Generally, review panels include three reviewers and one chairperson. While merit review scores and their ranking are not binding, ACF does consider them when selecting projects for funding. Scores and rankings are only one element used in the award decision-making process. Other criteria are explained in the Program Description section and in the Application Review section of the NOFO. For example, ACF may reserve the right to evaluate applications in the larger context of the overall portfolio by considering the geographic distribution of federal funds (e.g., ensuring coverage of states, counties, or service areas) in its pre-award decisions. ACF may elect not to fund applicants with management or financial problems that would indicate an inability to successfully complete the proposed project. In addition, ACF may elect to not allow a prime recipient to subaward if there is any indication that they are unable to properly monitor and manage subrecipients. Applications may be funded in whole or in part. Successful applicants may be funded at an amount lower than requested.

Deadlines for availability of funding for CED and RCD are published on www.Grants.gov in the Notices of Funding Opportunities (NOFOs).

RCD awards have non-competing continuations during the second through fifth budget period. Non-competing continuations will be issued based on availability of funds, satisfactory progress, compliance with terms and conditions and a determination that continuation funding is in the best interest of the federal government.

There is no appeal process for unsuccessful applicants. For existing recipients, appeals in regard to disputes may take place in accordance with 45 CFR Part 16, subject to the limitations of the Appendix A.