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Low Income Home Energy Assistance Program assistance with heating and cooling costs

Fiscal Year 2005 Leveraging Incentive Grants

THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-IM-2005-2, DATED 1/27/05

TO:            LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) 
               GRANTEES AND OTHER INTERESTED PARTIES

SUBJECT:       Fiscal Year 2005 Leveraging Incentive Grants

RELATED
REFERENCES:    Low Income Home Energy Assistance Act, Title XXVI of
               the Omnibus Budget Reconciliation Act of 1981,
               Public Law 97-35, as amended and Block Grant
               Programs Final Rule at 45 CFR Part 96.87, published
               May 1, 1995, in the Federal Register (60 FR 21322 et
               seq).

PURPOSE:       To advise LIHEAP grantees of the total amount
               of claimed leveraging activities taking place in FY
               2004 that were submitted by LIHEAP grantees in order
               to qualify for FY 2005 leveraging incentive awards.

BACKGROUND:    The Augustus F. Hawkins Human Services
               Reauthorization Act of 1990 (Public Law 101-501) 
               established a leveraging incentive program to
               reward grantees under the Low Income Home
               Energy Assistance Program (LIHEAP)that have acquired
               non-Federal home energy resources for low-income    
               households. Leveraging incentive funds are awarded to
               those grantees that use their own or other non-Federal
               resources to expand the effect of the Federal LIHEAP
               dollars.  On May 1, 1995, the Department of Health
               and Human Services (HHS) issued implementing
               regulations for this leveraging incentive program as
               part of a final rule published in the Federal
               Register (60 FR 21322 et seq).

               Under the program, leveraging incentive awards in 
               one fiscal year (the award period) will be based on 
               countable leveraged resources that were provided to 
               low income households during the previous fiscal 
               year (the base period). For example, FY 2005 
               incentive awards will be allocated to grantees based 
               on countable leveraged resources that were provided 
               to low income households in FY 2004.  Grantees 
               desiring leveraging incentive funds must submit an 
               application each year -- the LIHEAP Leveraging Report
               -- which delineates the amount and types of
               leveraging activities they carried out during the 
               base period.  HHS then determines whether the reported 
               activities meet the requirements of the statute and 
               regulations, and, therefore, are countable under the 
               program for the purpose of determining allocations 
               of the incentive funds.

               The HHS FY 2005 appropriations law (Public Law 108-199) 
               earmarked $27.5 million for this program for FY 2005.

CONTENT:       We received applications for FY 2005 leveraging
               incentive awards from 38 States, 30 tribes or tribal
               organizations, and one territory (see Attachment).
               Sixty-nine applications included claims for 579
               separate leveraging resources/benefits totaling a
               gross claimed value of $1,642,916,736.  The final
               net value of the claimed resources is $1,641,476,160
               after deducting $1,440,576 for: (1) the grantees'
               own funds used to identify, develop and demonstrate
               the activities; (2) costs or charges to low income
               households to participate in the activities; and (3)
               LIHEAP funds used to identify, develop, and
               demonstrate the activities (limited to the higher of
               $35,000 or 0.08% of a grantee's regular allotment
               for State grantees, or to up to 2.0% of the
               allotment for Indian tribes/tribal organizations and
               territories).

               We will review each of the claimed resources
               to determine whether it meets all the
               requirements of the statute and implementing
               regulations.  Using the final values approved for
               each grantee, we will calculate leveraging grant
               award allocations for FY 2004 based upon the formula
               that was included in the implementing regulations
               published in the Federal Register on May 1, 1995 (60
               FR 21322 et seq).  (See 45 CFR 96.87.)

               We hope to issue FY 2004 leveraging incentive grant 
               awards that reward FY 2003 leveraging activities by 
               May 2004.  Awards will be issued no later than 
               September 30, 2004.  The funds must be obligated by 
               grantees no later than September 30, 2005.  Consistent
               with the block grant philosophy, grantees must 
               determine what constitutes an "obligation" under their 
               own financial laws and procedures.

               If you believe you submitted an application for FY 
               2004 leveraging incentive awards and your organization 
               is not listed in the Attachment or if you believe the 
               information is incorrect, please contact us immediately.

ATTACHMENT:    Low Income Home Energy Assistance Program Leveraging 
               Reports Received on FY 2004 Activities in Order to
               Qualify for FY 2005 Leveraging Incentive Grants -
               Claimed Totals (Excel/36 KB)

INQUIRIES TO:  Nick St. Angelo, Director
               Division of Energy Assistance
               Office of Community Services, ACF, HHS
               370 L'Enfant Promenade, S.W.
               Washington, D.C.  20447
               Telephone:  (202) 401-5306
               Fax:  (202) 401-5661
               E-mail:  nstangelo@acf.hhs.gov





                                  ______________/s______________
                                  Nick St. Angelo
                                  Director
                                  Division of Energy Assistance
                                  Office of Community Services