For Fiscal Year (FY) 2013, the Office of Community Services (OCS) within the Administration for Children and Families (ACF) at the Department of Health and Human Services (HHS) will provide approximately $9.4 million in grants ($800,000 maximum per project) to Community Development Corporations (CDCs) for projects designed to address food deserts; improve access to healthy, affordable foods; and address the economic needs of low-income individuals and families through the creation of business and employment opportunities.

Through the Community Economic Development (CED) program and within the framework of the Healthy Food Financing Initiative (CED-HFFI), OCS seeks to fund projects that will implement innovative strategies for increasing healthy food access while achieving sustainable employment and business opportunities for recipients of Temporary Assistance for Needy Families (TANF) and other low-income individuals whose income level does not exceed 125 percent of the federal poverty level (http://aspe.hhs.gov/poverty).

The CED-HFFI program seeks to fund projects that implement strategies to address food deserts, increase healthy food access in low-income communities, foster self-sufficiency for low-income families, and create sustained employment opportunities in low-income communities. Funds can be used for costs associated with business start-up or business expansion activities, as consistent with the cost principles in OMB Circular A-122, found at 2 CFR Part 230, provided that the expenditures result in the creation of positions that can be filled with low-income individuals. Examples of successful use of CED-HFFI funds include financing the construction of grocery stores, providing direct assistance to farmers, supporting urban and rural farmers markets and retail markets, expanding existing food distribution businesses, and supporting food business entrepreneurs.

For more information, please see the full funding opportunity announcement.

NOTE: Applicants wishing to obtain funding for a project that does not promote improved access to healthy, affordable food can apply under the Community Economic Development (CED) Funding Opportunity Announcement (FOA Number HHS-2013-ACF-OCS-EE-0583).

PROGRAM BACKGROUND

The United States Department of Health and Human Services (HHS), The United States Department of the Treasury, and The United States Department of Agriculture (USDA) are working together to support projects to increase access to healthy, affordable food in low-income neighborhoods that lack access to healthy food options.  These three agencies aim to expand the availability of nutritious food through the establishment of healthy food retail outlets, including developing and equipping grocery stores, small retailers, corner stores, and farmers markets to help revitalize neighborhoods that currently lack these options.  The initiative builds upon the work led by First Lady Michelle Obama as part of the Let’s Move! initiative to promote active living, encourage healthy eating, and end childhood obesity.

Under this funding opportunity announcement (FOA), OCS seeks to fund projects that implement strategies to increase healthy food access, foster self-sufficiency for low-income families, and create sustained employment opportunities in low-income communities. To do this, the CED-HFFI program will provide technical and financial assistance for healthy food ventures designed to: (1) improve access to, and purchase and consumption of healthy, affordable foods; and (2) address the economic needs of low-income individuals and families through the creation of employment and business opportunities in low-income communities. A detailed definition of food deserts can be found in the Definition of Terms available later in this section.

PROGRAM GOALS

The CED-HFFI program's objective is to support businesses and commercial activities that improve the access to healthy foods and the overall health of community residents while creating long-term jobs in the community that:

•  Bring healthy food choices to communities that are in food deserts through the establishment of  new healthy food retail outlets or by supporting the offering of a significant number of healthy food choices at an existing retail outlet that lack such choices;
•  Develop and enhance distribution systems to increase the amount of healthy food going to healthy food retail outlets in food deserts;
•  Develop strategies that promote or encourage the purchase of healthy foods, including outreach and education to consumers in food deserts about healthy food choices and how they can be integrated into their diet; and
•  Provide income to low-income individuals so that they can become self-sufficient. 

PROGRAM ELEMENTS

The CED-HFFI program provides funding for projects aimed at improving access to healthy affordable foods located in geographic areas with a demonstrated need for the proposed project. To accomplish this, all projects must work to serve a food desert. Areas that are not in a USDA-defined food desert may still be eligible for funding through the CED-HFFI program if applicants can point to indicators of need, such as poor access to a healthy food retail outlet, a high percentage of low-income residents, incidence of diet-related health conditions, or high concentrations of persons eligible for food assistance programs (e.g., SNAP, WIC, school lunch programs). More information on obtaining county-level data relating to food access, food consumption, diet-related health indicators, and participation in food assistance programs can be found at: www.ers.usda.gov/foodatlas.

CED-HFFI projects are expected to demonstrate that the project budget includes all CED-HFFI and non-CED-HFFI funds needed to implement the project and result in the successful creation of jobs as outlined in the proposed application. When non-CED-HFFI financing is required to fully implement the project, the application must provide evidence that all capital requirements have been met through financing, cash resources, or in-kind contributions. Additionally, program income, as defined in the Definition of Terms available later in this section, may be used to demonstrate the long-term sustainability of the project. However, since CED-HFFI projects should be ready for implementation at the time of the award, future program income cannot be used to meet the non-CED-HFFI funding needs for project implementation.

Projects must also create at least a minimum number of jobs based on the following formula:

[Total Amount of Federal CED-HFFI Funds Awarded] divided by [$25,000 for construction projects or $20,000 for non-construction projects] = [Minimum Number of Jobs to be Created]. 

For example, if a grantee is awarded $800,000 in federal CED-HFFI funds, it must use that money to conduct activities that will create at least 40 jobs ($800,000 ÷ $20,000 = 40).  If the grantee is using a strategy that involves construction, the project must 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 the Appendix A: Sample Chart of Cost per Job Created at the end of this announcement.

While the focus of the program is the creation of jobs for low-income individuals through projects addressing food deserts, ACF does not expect that 100 percent of the created jobs will necessarily be filled by low-income individuals. 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 low-income individuals.

PROGRAM STRATEGIES

Projects funded with CED-HFFI funds can be non-construction or construction projects. For non-construction projects, the grant period is 3 years. For construction projects, the grant period is 5 years. The CED-HFFI program permits facility construction as needed to support business creation, business expansion, and/or job creation. However, it is important to note that 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-HFFI program as they are designed to be temporary in nature.

Many projects utilize grant funds for a loan or a revolving loan fund to provide loans to businesses and/or as an equity or stock investment. An applicant can use grants funds to support one or multiple project strategies. However, it must provide the necessary evidence required for each strategy used as identified in Section IV.2. Content and Form of Application Submission. A summary of each of these activities is provided in the Definition of Terms available later in this section.

Examples of successful use of CED-HFFI funds include financing the construction of grocery stores, providing direct assistance to farmers, supporting urban farmers markets and urban retail markets, expanding existing food distribution businesses, and supporting food business entrepreneurs. The applicant can provide a loan to a business and become an equity partner in a second business in the same application; however, both must address food desert needs.

ELIGIBLE ACTIVITIES

Funds can be used for costs associated with business start-up or business expansion activities, as consistent with the cost principles in OMB Circular A-122, found at 2 CFR Part 230, provided that the expenditures result in the creation of positions in a viable industry that can be filled with low-income individuals and improve access to healthy, affordable foods. This includes start-up capital for operating expenses, such as salaries, facilities, and equipment, but not long-term or ongoing operating expenses.

For FY 2013, incubator development is allowable as long as the focus of the incubator is healthy food and can demonstrate substantial and specific job creation for low-income individuals. For more information on an incubator, see the Definition of Terms found later in this section. 

INELIGIBLE ACTIVITIES

CED-HFFI grant funds may not be used for reimbursement of pre-award costs, or to provide subawards, or to capitalize loan loss reserve funds, or to support projects designed to primarily support training and technical assistance centers without directly creating jobs, i.e., Business Training and Technical Assistance Centers. Limited job training and job placement activities can be supported in the context of modest training that may be 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, but cannot be used to operate a general job training and placement program.

FEDERAL EVALUATION

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

The federal evaluation strategy will include grantee-level documentation of activities, outputs, and outcomes. As a condition of acceptance of a grant award, all funded grantees 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.

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

DEFINITION OF TERMS

The following definitions apply throughout this announcement and applicants are strongly encouraged to review these carefully prior to submitting an application.

NOTE: The italicized words that appear in the following definitions are terms that are defined elsewhere in this list of definitions.

Alteration and Renovation (A&R) - For this announcement, A&R of real property is defined as work required to change the interior arrangements or installed equipment in an existing facility to more effectively utilize the facility for its current or planned business purpose consistent with the job creation requirements of the CED-HFFI program.  The work may be categorized as improvement, conversion, rearrangement, rehabilitation, remodeling, or modernization, but it does not include expansion, new construction, development or repair of parking lots, or activities that would change the "footprint" of an existing facility.  OCS grant funds expended for the A&R costs of grantee-owned facilities that total more than $150,000 or 25 percent of the total direct cost for the funded project require the filing of a Notice of Federal Interest (NFI).  (See also Major Alteration and Renovation.)

Beneficiary - A low-income individual who will directly benefit from the project.

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

Cash Contributions - The grantee's cash outlay, including the outlay of money contributed by the grantee's equity investors or donors for budgeted costs of the project.

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 low-income individuals.  Such conditions may include: 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 service, child care, or job training; high incidence of crime; inadequate health care; or environmental hazards such as toxic dumpsites or leaking underground tanks.

Community Development Corporation (CDC) - To be a CDC, an organization must meet three conditions:

•  The organization must be a private, nonprofit with 501(c)(3) or non-501(c)(3) status;
• The organization must have articles of incorporation, bylaws, or other official documents demonstrating that the CDC has a principal purpose of planning, developing, or managing low-income housing or community economic development activities; and
• The Board of Directors of the organization must have representation from community residents, business leaders, and civic leaders.

NOTE: The CDC designation does not need to be specified on any official documents as long as the three requirements previously stated are met.

Community Economic Development (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 - Projects that involve the initial building or large scale modernization or permanent improvement of a facility. NOTE:  A grantee must file a Notice of Federal Interest (NFI) if it uses CED-HFFI funding for hard costs or major alteration and renovation of real property to construct or provide major alterations and renovations or for acquisition of a facility or land for the project.  See also the definition of Reversionary Interest.

Contract - A contract refers to the procurement of goods and services purchased by a grantee for its own use in carrying out the project.  The term does not apply to financial assistance awarded to a third-party for the third-party's benefit.  (See also Subaward.)

Eligible Activities - Activities that contribute to creation or expansion of sustainable businesses and full-time, full-year positions within a service area consistent with the cost principles in OMB Circular A-122, as implemented by 2 CFR Part 230, and any other applicable rules, provided that the expenditures result in job creation for low-income individuals.

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

Equipment - Tangible, non-expendable personal property, including exempt property, acquired with CED-HFFI grant funds, having a useful life of more than 1 year and an acquisition cost of $5,000 or more per unit.

Equity Investment - The provision of capital to a for-profit 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.

Faith-based Organization - An organization that has a religious character.

Financial Strategies - That component of the business plan demonstrating the way(s) in which the applicant will access program capital to fully implement the project at the time of the award, as well as the way the applicant will manage, monitor, and utilize capital resources to successfully create jobs.  It encompasses the quality of systems and skills for accounting, budgeting, financial management, cash and credit management, and control over purchase and inventory.

Financial Viability - That component of the business plan demonstrating the financial ability of the applicant to achieve the project's goals of the creation of permanent full-time, full year positions for low-income individuals over the project period.

Food Desert - Low-income communities where a substantial number or share of residents has low access to affordable and healthy food retailers. Healthy food options in these communities are hard to find or are unaffordable.  To qualify as a food desert, a community must either:

• Be a census tract determined to be a food desert by the U.S. Department of Agriculture, as identified in USDA’s Food Access Research Atlas; OR
• Be a Geographic Unit (i.e., county (or equivalent area), minor civil division that is a unit of local government, incorporated place, census tract, block numbering area, block group, or American Indian or Alaska Native area), which has unemployment and poverty rates that are at or above the state or national levels, and which has been identified as having low access to a supermarket or grocery store through a methodology that has been adopted for use by another governmental or philanthropic healthy food initiative.

Full-time, Full-year Position - A non-seasonal 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 Award and that sets forth the standard terms and conditions with which grantees are required to comply. Applicants are expected to provisionally sign the Statement of Grant Terms and Conditions as an acknowledgement that the official submitting an application for OCS funding has read and understands the terms and conditions applicable to the project, if awarded funding.

Hard Costs - Capital costs related to the acquisition, construction, and/or alteration and renovation of real property, exclusive of related soft costs such as appraisals, environmental studies, and architectural and engineering services.

Healthy Food - Whole foods such as fruits, vegetables, whole grains, fat-free or low-fat dairy, and lean meats that are perishable (fresh, refrigerated, or frozen) or canned, as well as nutrient-dense foods and beverages encouraged by the 2010 Dietary Guidelines for Americans.

Healthy Food Producer - An individual, group of individuals, or entity that produces healthy agricultural commodities or adds value to such commodities to create healthy food products.

Healthy Food Retail Outlet - For-profit or non-profit sellers of fruits, vegetables, and other foods recommended in the 2010 Dietary Guidelines for Americans and can include, but are not limited to, a grocery store, mobile food retailer, farmers market, cooperative, corner store, bodega, or a store that sells other food and non-food items, including an existing retail store that upgrades to offer a full range of healthy food choices.

Incubator - A program to help start-up businesses flourish by providing support, resources, and business services and advice, normally in one physical location.  Incubators that are established without walls are not supported by this announcement.

Indirect Costs - Overhead costs of an organization that have been approved by HHS or other federal agencies for use in applying for federal funds.

Ineligible Activities - Grant funds cannot be used to create Microenterprise Business Training and Technical Assistance Centers, nor can they be used primarily for creation of job training and job placement programs. Limited job training and job placement activities can be supported in the context of modest training that may be 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, but cannot be used to operate a general job training and placement program.  

Intangible Property - Trademarks, copyrights, patents and patent applications, and such property as loans, notes, and other debt instruments, lease agreements, stock, and other personal property ownership, acquired with grant funds. NOTE: Grantees who use federal funding to purchase or create intangible property or debt instruments must report to the federal government on the continued use of such funds up to 12 years after the end of the project.

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 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 development of new business ventures, the expansion of existing businesses, or the development of new products and services.  The training and placement of individuals in positions existing prior to the start of the project, even positions guaranteed to low-income individuals 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.

Letters of Support - A signed letter of support that describes government and/or community support for the project, the specific relationship to the applicant, and knowledge of the applicant's experience and qualifications in business and job creation.

Loan - Money provided to finance an eligible 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 businesses must be at or below market rate (or what commercial lenders would offer).

Low-income Individual - An individual whose household income level does not exceed 125 percent of the official poverty guidelines as found in the most recent revision of the HHS Poverty Guidelines published by HHS.  These guidelines may be found at http://aspe.hhs.gov/poverty/index.shtml.

Major Alteration and Renovation - Alteration and renovation activities for which the aggregate of expenditure of OCS funds by the grantee is greater than $150,000 or 25 percent of the total direct cost for the project.  For the CED-HFFI program, a Notice of Federal Interest (NFI) must be filed when grant-funded construction or major alteration and renovation begins or when an existing facility or land is acquired with grant funds.

Microenterprise - A commercial 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.

Non-cash Contributions - Synonymous with "in-kind" contributions, the 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.

Non-profit Organization - Any corporation, trust, association, cooperative, or other organization 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 Attachment C of OMB Circular No. A-122.

Notice of Federal Interest (NFI) - A lien or other notice of public record that a grantee must file if it directly expends federal grant funds for acquisition, construction, or major alteration and renovation of real property. See also the definition of Reversionary Interest.

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 abuse, insufficient life skills, criminal history, health problems, or disability.

Poverty Income Guidelines - Guidelines published annually by HHS that establish the level of poverty defined as low-income for individuals and their families. The guideline information is posted on the Internet at the following address: http://aspe.hhs.gov/poverty/index.shtml.

Program Income - Income earned by a grantee from federally funded activities.  Program income may not be used to meet the non-CED-HFFI funding needs for implementation of the project in the project design. (e.g., it may not be used as equity in the project to demonstrate that the non-CED-HFFI funding needs for implementation have been met.)

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

Project Partner - Any individual, organization, or business entity participating in the project that is not the direct recipient of CED-HFFI grant funds. Typical project partners include the following: equity investors, donors, a more experienced partner, a wholly owned subsidiary, or a business entity to which the grantee makes an equity investment or capitalizes a loan in support of grant purposes. NOTE: CED-HFFI grantees must play a substantive role in the HFFI project. A grantee working with a project partner must actively monitor the project and ensure compliance with CED-HFFI program requirements.

Project Period - The total time for which federal support has been programmatically approved as shown in the Notice of Award (NOA). Non-construction projects will have a 3-year project period. Projects that involve construction will have a 5-year project period.

Public Agency Partner - Public assistance and other agencies responsible for administering child support enforcement, Temporary Assistance to Needy Families (TANF), and employment education and training programs (e.g., the Department of Labor's ETA-funded One-Stop Career Centers).

Real Property - Land, including land improvements, structures, and appurtenances (excludes movable machinery and equipment). NOTE: Grantees using federal funding for construction, major alterations and renovations, or to acquire a facility or land for the project must file a Notice of Federal Interest (NFI). See also the definition of Reversionary Interest.

Reversionary Interest - The federal government's ongoing interest in certain types of property acquired or improved with federal grant funds expended by grantees who are funded under this announcement. Reversionary Interest is triggered when such property is no longer needed for the original authorized purpose or in an event of grantee default. Property funded in whole or in part with federal funds revert to the federal government whenever the property is no longer being used for purposes consistent with the Federal program. In this case, the term "property" includes real property, intangible property and debt instruments, and equipment.

Revolving Loan Fund - A distinct loan fund established exclusively for CED-HFFI projects as a resource for loans, to finance eligible business development and operational activities that, when principal is repaid, is used to make new loans that support a similar purpose. Interest accrued on CED-HFFI funds in a revolving loan fund must be used to continue or expand the activities of the approved project.  See also the definition of Reversionary Interest.

Rural Community - For purposes of this announcement, bonus points will be awarded to projects that will create jobs in a rural community (as defined by the White House’s Office of Management and Budget – OMB) or hire low-income individualsfrom a rural community to fill positions created.  OMB designates counties as Metropolitan, Micropolitan, or Neither. 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 (MSA) are considered rural. Micropolitan counties are considered non-Metropolitan or rural along with all counties that are not classified as either Metro or Micro. For more information on Metro areas, see: www.census.gov/population/metro/data/maps.html.The 2010 Census data has not yet been used to designate new Metro or Micro areas.

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 all of the following 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; and 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 project).

Soft Costs - Capital costs related to the acquisition and/or alteration and renovation of real property such as appraisals, environmental studies, and architectural and engineering services.

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 grantee are equity investments. Such investments may be made by grantees in affiliated and non-affiliated businesses.

Subaward - Subawards are not permitted under this funding opportunity announcement. A subaward is an award of financial assistance in 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.  (NOTE: Equity investments and loan transactions are not subawards; these qualify as intangible property and debt instruments.)

Target Population - Low-income individuals residing in the project's service area.

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.

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 (part A of title IV under the Social Security Act), as amended.

Third-Party Agreement - Written and signed agreements between grantees and subgrantees, or subcontractors, 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. The following are examples of common types of third-party agreements for CED-HFFI projects:

•  Commitment Letter - A signed letter of commitment that describes the level of financial support for the projectmade 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-HFFI funds (e.g., loans, municipal 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 agreement that documents a capital investment by a grantee in abusiness to achieve the purposes of the project as defined in the application. The agreement sets forth the grantee's share of ownership in the business, the terms and conditions related to the use of the invested funds, the rights of the grantee 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 must include the elements outlined in Section IV.2. Content and Form of Application Submission, The Project Description, Business Plan – Project Viability.
• Project Partner Agreement - A written and signed agreement, entered into by the grantee and project partners, such as a more experienced partner, that will directly or indirectly spend CED-HFFI funds. A memorandum of understanding with a project partner committing resources or capital is a typical project partner agreement. The agreement must include the elements outlined in Section IV.2. Content and Form of Application Submission, The Project Description, Business Plan – Organizational Profile.

Training - For the purposes of this announcement, 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 organization.

Underserved Areas - For the purposes of this funding opportunity announcement, underserved areas are the 37 states and territories that do not have an active CED-HFFI projectfunded in FY 2011 or FY 2012. These states and territories include: Alaska, American Samoa, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Island of Guam, Kansas, Kentucky, Louisiana, Maine, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Dakota, Northern Mariana Islands (CNMI), Oklahoma, Puerto Rico, South Dakota, U.S. Virgin Islands, Utah, Vermont, Washington, West Virginia, and Wyoming.

ADDITIONAL RESOURCES

Resources for prospective applicants, including a pre-recorded applicant webinar, will be available at www.acf.hhs.gov/programs/ocs/ced/index.html under the link titled "Grantee and Prospective Grantee Resources and Tools." The resources will be available until the closing of this FOA.

For application details and requirements related to the CED-HFFI Program, including application components and submission requirements, please see Section IV.2 Content and Form of Application Submission, The Project Description. The evaluation criteria is discussed in detail in Section V.1. Criteria. Applicants are encouraged to review the funding opportunity announcement very closely and submit all required information, as outlined in the announcement. Applicants are also encouraged to review the Definition of Terms available in this section and utilize the Checklist provided in Section VIII. Other Information to ensure all required materials have been submitted. 

Non-construction projects will have one 36-month project and budget period.  Projects that involve construction will have one 60-month project and budget period. 

All awards will be fully funded. 

As outlined in Section 680(a)(2) of the Community Services Block Grant (CSBG) Act of 1981, as amended by the Community Opportunities, Accountability, and Training and Educational Services Act of 1998 (Pub. L. 105-285), to be eligible for the CED-HFFI program, an applicant must meet three conditions:

• Applicant must be a private, non-profit CDC with 501(c)(3) or non-501(c)(3) status;
• Applicant must have articles of incorporation, bylaws, or other official documents demonstrating that the CDC has as a principal purpose the planning, developing, or managing of low-income housing or community economic development activities; and
• The Board of Directors must have representation from each of the following: community residents, business leaders, and civic leaders.

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

FOA Requirement

Grant awards will not be made to the same applicant under both the CED and the CED-HFFI announcements in FY 2013.

Applications that do not support improved access to healthy, affordable food in food deserts will not be funded under this funding announcement.

The Project Description is limited to 75 pages and must include the following items in this order: 

• Table of Contents
• Project Summary/Abstract
• Objectives and Need for Assistance
• Geographic Location
• Reference to Legal Status of Applicant (See CDC definition included in Section I. Funding Opportunity Description, Definition of Terms)
• Business Plan - Project implementation
• Business Plan - Project Viability
• Business Plan - Financial Strategies
• Business Plan - Organizational Profile
• Business Plan - Past Performance with Similar Job Creation Projects
• Business Plan - Staff and Position Data
• Budget and Budget Justification
• Bonus Points - Collaboration with Other Federal HFFI Programs and Certain Additional Federal Programs that Address Healthy Food Access
• Bonus Points - Underserved Areas: States or Trust Territories Without Active CED Grants
• Bonus Points - Underserved Areas: CED Projects Located in Rural Communities 

The Appendices are limited to 125 pages and must include the following in this order: 

• Table of Contents
• Proof of Legal Status/Proof of Non-Profit Status
• Market Research and Data
• Evidence of Site Control
• Audited Financial Statements
• Financial Documentation (i.e. profit and loss forecasts or pro forma, cash flow projections, balance sheets, and sources and uses of funds statements)
• Third-party agreements
• Resumes
• Letters of Support
• Other Supporting Documentation

PROJECT IMPLEMENTATION 

The business plan for the CED-HFFI project must provide a clear overview of the nature of the project, how it will address the need for healthy, affordable foods and help address a food desert describing: how the business(es) will be created and/or expanded; and how the new jobs will be created. A clear description will discuss whether the project is construction or non-construction and whether the project involves business creation or expansion, and equity investment, revolving loan fund, or loan investment. It will further present a clear and well-conceived overall approach to the project, including detail demonstrating that the project will be implemented in a way that will achieve the program's goals and objectives. An implementation plan that provides sufficient detail for a reviewer to clearly understand how each aspect of the project will be implemented is helpful in demonstrating feasibility. 

Such an implementation plan might include a list of milestones, linkages to proposed project outcomes, a discussion of how those milestones will be achieved, and an analysis of any factors that might affect the schedule and proposed strategies for dealing with them. A quarterly timeline covering all years of the project and identifying when the specific milestones will be achieved can help document that the new positions to be created will be in place at least one year before the anticipated project end date.

The proposed project must serve an identified food desert as defined in the Definition of Terms in Section I. Funding Opportunity Description. Applications must provide recent evidence (published within the last 5 years) that the project will serve a USDA-designated food desert. Areas that are not in an USDA-defined food desert may still be eligible for funding through the CED-HFFI program if applicants can point to indicators of need, such as poor access to a healthy food retail outlet, a high percentage of low-income residents, incidence of diet-related health conditions, or high concentrations of persons eligible for food assistance programs (e.g. SNAP, WIC, school lunch programs). More information on obtaining county-level data relating to food access, food consumption, diet-related health indicators, and participation in food assistance programs can be found at: www.ers.usda.gov/foodatlas.

The application must address the lack of access to healthy, nutritious food options and demonstrate how the project will address a food desert need (i.e. greater community access to fresh, affordable, nutritious food; improved food infrastructure to facilitate access; enhanced supply chain; etc.).  Applications must quantify the extent to which the project will increase access to fresh, affordable, nutritious food to residents of communities that: 

• Lack access to healthy food options;
• Indicate patterns of non-healthy food consumption (such as low rates of fruit and vegetable consumption);
• Suffer from poor health indicators (such as high rates of obesity, diabetes, and other diet-related chronic diseases);
• Have high concentrations of persons participating in food assistance programs (for example, Supplemental Nutrition Assistance Program; Women, Infants, and Children food packages; school lunch programs); and/or
• Demonstrate other indications of need for a CED-HFFI funded project intervention.

The application must demonstrate that the healthy food project will create positions in a viable industry, which improves access to healthy, affordable food. This can be accomplished by discussing the industry's short- and long-term position outlook and identifying any critical risks relating to the industry. 

To demonstrate market viability for the healthy food venture, the application must present market research analyzing competition, estimated market share and sales, and customer base by market segment, size, and trends. NOTE: Market research and industry data used to support the application should come from recent (within the past 5 years) published source and should provide reference citations that include sufficient detail to allow a reviewer to obtain and verify statistics for the source data.

The applicant must provide evidence that a viable recruitment strategy and tracking system has been established to ensure that a minimum of 75 percent of the new positions are filled by low-income individuals as defined in the Definition of Terms available in Section I. Funding Opportunity Description. The application must demonstrate that the strategy will focus on the number of positions created, rather than the number of individuals hired to fill them, over the course of the grant. The recruitment plan must include signed agreements, such as memorandums of understanding (MOUs), partnership agreements, or letters of commitment, that document how the applicant will work with social service providers such as TANF, employment education and training programs (for example, the Department of Labor's ETA-funded One-Stop Career Centers), and local Child Support Enforcement (CSE) agencies to obtain and document low-income referrals. Agreements must describe the roles and responsibilities the applicant and public agencies will have in support of the project and be signed and dated by both the applicant and public agency staff with signature authority.

The application must demonstrate that the number and types of new full-time positions that will be created are appropriate for the healthy food venture. Information that can help support an assertion that a proposed position is appropriate might include position title and a summary description of the duties associated with the position; anticipated starting wage or salary; a projection of wage or salary growth opportunities; and employee benefits that will be offered with the position or an explanation of why no benefits are required.

The application must demonstrate that the full-time positions created will be sustained for at least 1 year after the end of the grant period. One way that this can be accomplished is by providing a growth plan that lists the steps that will be taken to set up the project solidly and position it for continued success after the end of the grant period. A discussion of the continued need for the positions after the end of the grant period also can be helpful.  

The application must describe how any confidential or sensitive information will be collected during the course of the project, whether from staff (e.g., background investigations) or project participants and/or project beneficiaries, and provide a description of the methods that will be used to ensure that confidential and/or sensitive information is properly handled and safeguarded. Also, the application must include a plan for the disposition of such information at the end of the project period.

The application must also demonstrate a willingness to participate fully in the federal evaluation(s) and to allow all evaluation protocols established by ACF or its designee contractor.

PROJECT VIABILITY

The applicant will demonstrate that adequate resources will be available to implement the healthy food venture as described in the business plan with or without additional project partners such investors, donors, subsidiary organizations, entities receiving an equity investment from the grantee, etc. If the applicant does not need outside resources to carry out the project, the application should clearly explain how each part of the project will be accomplished using CED-HFFI funds and resources provided by the applicant only.

The applicant must demonstrate control of the site and/or facilities required to operate the project or that site control is conditioned only on the receipt of the grant award. Providing evidence of site control demonstrates that this aspect of the project’s approach is viable. A discussion of the procedures that will be used to acquire any required equipment also demonstrates the grantee's readiness to undertake the project in compliance with all program requirements. Proof that the physical facility will be secured includes 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; and 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 project).

The application must demonstrate that the applicant has the capacity to responsibly manage the proposed federal funds. Evidence for this includes Financial Statements for the last 2 years showing an operating budget consistent with the amount of funds requested. The applicant must demonstrate the capacity to manage funds responsibly along with its ability to adequately protect any federal funds awarded under the application through a financial management system that complies with 45 CFR Part 74 and is consistent with Generally Accepted Accounting Practices (GAAP) standards.

For a newly established entity, an official such as an executive director or board member authorized to make decisions on behalf of the organization must attest to financial viability by providing a signed statement agreeing to establish a financial management system, developed in accordance with 45 CFR Part 74, within 6 months of incorporation of the new entity, along with a signed financial statement stating that the organization is financially healthy.

If the applicant proposes to use any portion of the CED-HFFI funds as an equity stock investment, the application should demonstrate that any equity stock investment agreement will be in compliance with 45 CFR  § 74.36 concerning intangible property.  To demonstrate compliance, an equity stock investment agreement includes: the purpose(s) for which the applicant will make the equity stock investment; the type of equity stock transaction (such as stock purchase); the cost-per-share and basis on which the applicant derived the cost-per-share; the number of shares the applicant will purchase; the percentage of applicant ownership in the business; and the term or duration of the agreement. If the grantee's equity stock investment equals 25 percent or more of the businesses' assets, the applicant should demonstrate adequate representation on the board.  For example, the applicant could specify the total number of seats on the Board and the number of seats to be held by the grantee.

For loan or revolving loan fund projects, the application must identify the specific healthy food-related business(es) that will receive the loan(s) and demonstrate how loans will be made in compliance with all program requirements described elsewhere in this announcement, including 45 CFR § 74.36 concerning intangible property. This includes strategies to ensure that loan funds go to eligible beneficiaries for business development activities; that the interest rate charged will be at or below market rate; that copies of executed loan agreements will be submitted to ACF upon establishing such loans with program participants; that any interest accrued on revolving loan funds will be used to continue or expand the activities of the originally approved project during the grant period; and that any repaid principal on such loans that is no longer needed for the originally authorized purpose of the CED program will revert to ACF (see 45 CFR § 74.36 for additional information pertaining to the use of intangible property). To demonstrate compliance, applications should  provide sample loan agreements which include: name of the specific business(es) receiving the loans; the type(s) of the healthy food business(es); the healthy food business development plan(s); the purpose(s) for which the applicant will make a loan; the loan period; the interest rate to be charged that will be at or below market rate; the repayment schedule; the collateral security required; the default and collection procedures; the signatures of the authorized officials of the lender and borrower; and a commitment by the borrower to create new, full-time, full-year jobs - at least 75 percent of which will be filled by low-income individuals.

In the case of a revolving loan fund, the applicant must identify the business(es) that will receive the initial loans, not any subsequent future loans. The applicant must also indicate that copies of executed loan agreements will be submitted to ACF upon establishing such loans with project participants. 

FINANCIAL STRATEGIES

The applicant must include an acceptable financial plan in place for the healthy food project that demonstrates that the project will be economically feasible by the conclusion of the grant period: 3 years for non-construction and 5 years for construction projects. The financial plan should also demonstrate that the financial estimates are grounded in solid business assumptions and the healthy food project will remain viable for at least 1 year after the end of the grant period.  For business project partners currently in existence, the applicant should evaluate the feasibility of new job creation based upon current and projected business operations as verified by market analysis. Supporting documentation that could contribute to demonstrating financial feasibility includes profit and loss forecasts or pro forma, cash flow projections, balance sheets, and sources and uses of funds statements for all funds available to the project. Documentation is further enhanced when it includes details about both CED-HFFI and non-CED-HFFI funding sources (if applicable) and itemizes expenses by funding source. If non-CED-HFFI financing is required to fully implement the healthy food project, the application must provide evidence that all capital requirements have been met through financing, cash resources, or in-kind contributions. Such evidence should include: 

• Commitment letters describing unconditional financial commitments for loans, municipal or state tax credits, equity stock investments, or other supporting grants and investments. 
• The applicant's financial statement of cash available showing the ability of the applicant to contribute any non-CED-HFFI cash resources that are needed for the project.
• Documentation of in-kind contributions of personal property and a demonstration of how the value of those contributions was arrived at through techniques such as an inventory valuation for equipment and/or a certified appraisal for real property.

The application must show that it will create at least the minimum number of jobs for the amount of the requested award equal to the ratio found by dividing the requested award amount by $25,000 for construction projects or $20,000 for non-construction projects. For examples of number of jobs based on specific award amounts, see Appendix A: Sample Chart of Cost Per Job Created at the end of this announcement.

For healthy food ventures involving construction, financial plans must include all construction aspects of the project, including property acquisition costs, predevelopment costs, architectural costs, engineering costs, environmental study costs, costs for building permit acquisition and use, occupancy costs, and hard construction costs.

ORGANIZATIONAL PROFILE  

The application must demonstrate the organization, its staff, and its project partners have sufficient and relevant experience and success in developing and operating businesses similar to those to be conducted under the proposed project. Applicants that cannot demonstrate substantial experience with economic development projects similar in size and scope to those proposed in the application, must provide evidence of a viable partnership with a more experienced partner (as defined inSection I. Funding Opportunity Description) including evidence of a workable and strategic arrangement for the more experienced partner to provide the administrative, technical, and/or financial technical assistance needed to ensure the success of the project.

If the applicant proposes to partner with organizations that will directly or indirectly spend CED-HFFI funds, the application must include a partnership agreement between the applicant and the project partner that includes a description of roles and the relationship between the applicant and project partner. The agreement must be signed by all parties. The agreement should address topics such as ensuring that: 

• The proposed project is committed to improving access to healthy, affordable foods in a food desert;
• A minimum of 75 percent of the positions created and tracked as a result of the project partner's involvement in the project will be filled by low-income individuals;
• Prospective candidates for positions to be filled by low-income individuals will be recruited and verified as eligible under the program;
• Strategies for retention of low-income individuals in the newly created positions have been established;
• Detailed records documenting appropriate expenditures of grant funds will be provided regularly;
• The grantee will play a substantive role in the project and will actively monitor the partner(s)’s activities to ensure compliance with CED-HFFI program requirements;
• All parties will cooperate with federal monitoring efforts; and
• The project partner will maintain accurate, unduplicated counts of positions created, as distinct from the number of individuals hired to fill them over the course of the grant.

The application must also demonstrate the project partner's financial viability and include evidence that the partner has the capacity to responsibly manage the proposed federal funds.

PAST PERFORMANCE WITH SIMILAR JOB CREATION PROJECTS

The application must include evidence of two business creation or business expansion projects undertaken by the applicant that are similar to the project for which CED-HFFI funding is being requested, specifically in terms of creating comparable jobs for low-income individuals. For each of the two business creation or business expansion project examples given, the application must provide a quantitative and qualitative description of the impact of these projects, including the number of jobs created; wages, benefits, and position descriptions that indicate the jobs created provided wages that allowed persons to leave public assistance programs or similar supports; and the number of years of project operation and position availability.

STAFF AND POSITION DATA

The application must demonstrate through biographical sketches, degree information, resumes, and descriptions of previous project experience that the identified staff are qualified to carry out the proposed project. Resumes should be no more than two pages in length and identify staff percent of time available for the project.

The application must state clearly whether all key project staff positions are filled and show that identified staff have the appropriate time commitment available and experience in supervision, finance and business development and management, and working with the target population. The discussion of staff experience must be sufficiently detailed to allow reviewers to assess whether individuals' skills and experience demonstrate an ability to fulfill the tasks assigned to them.

In cases where a key staff person has not yet been hired, the application must demonstrate that an appropriate position description, recruitment strategy, and estimated hiring timeline have been developed.

Grant awards may not be used to support external evaluations. ACF plans to implement a federally sponsored evaluation strategy to assess the success of approved CED demonstration projects.

Subawards are not permitted under projects receiving funds under this announcement.

Grant awards may not be used to capitalize loan loss reserve funds.

Organizations are allowed one CED award per year.

Information should be stated clearly and succinctly, linking the organization's proposal to the evaluation criteria. Applicants should focus on who will be responsible for achieving the outcomes of the project, why completion of these activities will help address stated needs, how the proposed activities will be carried out, when the proposed activities will occur, and what financial and programmatic resources will ensure successful completion of the proposed activities and the overall project.

The number of bulleted statements under each review criterion does not necessarily reflect an equal distribution of points among corresponding point values. The entire application will be reviewed and evaluated. Particular emphasis will be placed upon the strengths and weaknesses of the application's correlation to the CED-HFFI goals and program elements identified in Section I. and Section IV.2. of the announcement.

Each application will be scored according to the following criteria and point system.

Applicants must justify and demonstrate the project will serve a food desert. Only projects that address the lack of access to healthy, nutritious food options; identify the community as a food desert (see definition in Section I. Funding Opportunity Description); and demonstrate how the project will address a food desert need (i.e. greater community access to fresh, affordable, nutritious food; improved food infrastructure to facilitate access; enhanced supply chain; etc.) will qualify for funding under this announcement.

Applicants are allowed one CED award per year.

Applicants will not be provided funding to a previously funded project that is to be carried out using the same work plan in the same target area.

Awards will be made no later than September 30, 2013.

Appendix A

Sample Chart of Cost per Job Created

Applicants will agree to create at least the minimum number of jobs for the amount of the requested award equal to the ratio found by dividing the requested award amount by $25,000 for construction projects or $20,000 for non-construction projects. Example of cost per job created follows.

Award Amount           Jobs for Construction Projects        Jobs for Non-Construction Projects

100,000                       At least 4 jobs                                  At least 5 jobs

200,000                       At least 8 jobs                                  At least 10 jobs

300,000                       At least 12 jobs                                At least 15 jobs

400,000                       At least 16 jobs                                At least 20 jobs

500,000                       At least 20 jobs                                At least 25 jobs

600,000                       At least 24 jobs                                At least 30 jobs

700,000                       At least 28 jobs                                At least 35 jobs

800,000                       At least 32 jobs                                At least 40 jobs