CSBG IM #42 Statutory Requirements for Designation Priority of Private Non-Profit Organizations Over Political Subdivisions as Eligible Entities in Unserved Areas
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COMMUNITY SERVICES BLOCK GRANT PROGRAM Information Memorandum |
U.S. Department of Health and Human Services |
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Transmittal No.42 |
Date: April 10, 2000 |
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TO: State Community Services Block Grant Directors and State Associations of Community Action Agencies. SUBJECT: Statutory requirements for designation priority of private nonprofit organizations over political subdivisions as eligible entities in unserved areas PURPOSE: This memorandum restates the new statutory requirement that States designate a qualified private nonprofit organization over a political subdivision to serve as an eligible entity for receipt of CSBG funds, pursuant to the Community Services Block Grant Act of 1998. REFERENCES: Community Services Block Grant Act of 1998, 42 USC § 9909 (1999). POLICY SUMMARY: The CSBG reauthorization in 1998 changed the requirements for how a State considers different types of organizations in designating an "eligible entity" for an unserved geographic area. Specifically, the statute now compels a State to seek a qualified private nonprofit organization as the first option for designation. 42 USC § 9909(a)(1). Only in circumstances where no such private nonprofit organization can qualify may a State consider designating a political subdivision or public organization. 42 USC § 9909(c). If a qualified private nonprofit organization exists, a political subdivision may not be designated. Therefore, in designating a new eligible entity, a State must first solicit applications from (1) private nonprofit organizations within the unserved area that could be capable of providing a range of services and meeting the requirements of the CSBG Act; (2) private nonprofit organizations that are already eligible entities in an area contiguous with or within reasonable proximity to the unserved area. In this first round of review, a State may not consider a political subdivision or an organization other than a private nonprofit organization, even if such a subdivision or public organization already serves as an eligible entity or receives CSBG funds. Only when the State cannot identify a viable private nonprofit organization may it then designate a political subdivision. Inquiries Please address questions to: U.S. Department of Health and Human Services Administration for Children and Families |
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Margaret Washnitzer, D.S.W. |