CSBG IM #42 Statutory Requirements for Designation Priority of Private Non-Profit Organizations Over Political Subdivisions as Eligible Entities in Unserved Areas
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
Office of Community Services Division of State Assistance
370 L'Enfant Promenade SW, Suite 500 West
Washington, DC 20447
(202) 401-9343 [main phone]
(202) 401-5718 [fax]
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
Office of Community Services Division of State Assistance
370 L'Enfant Promenade SW, Suite 500 West
Washington, DC 20447
(202) 401-9343 [main phone]
(202) 401-5718 [fax]