U.S. Department of Housing and Urban Development

HOUSING

Special Attention of: Notice H 95-81 (HUD)

All Secretary\'s Representatives,

All State and Area Coordinators, Issued: September 29, 1995

Directors of Housing, Directors Expires: September 30, 1996

Of Multifamily, Chiefs, Asset

Management Branches, Directors, CPD Cross References:

Director, Public Housing, Contract Handbooks: 4350.1 REV-1,

Administrators, Owners/Managers 4381.5 REV-2, 4571.3 REV-1,

of Multifamily Projects 4571.2, 4571.4, 4571.5,

4350.5

Subject: Computerized Community Connections - How to Develop
Computerized

Learning Centers in HUD Insured and Assisted Housing

TABLE OF CONTENTS:

Page

1\. Purpose 2

2\. Background 2

A. What is \"Computerized Community

Connections?\" 3

B. What is a Computerized Community

Connections Plan (CCC Plan)? 3

C. What is a Computerized Learning Center? 4

D. Philosophy of Computerized Community

Connections. 6

3\. Project Eligibility 11

4\. Funding of the CCC Plan 11

A. Obtaining Grants from Outside Sources 11

B. Using the Project Funds/Residual

Receipts Account 11

C. Increasing the Amount of the Owners

Initial Equity Investment in the

Property 12

D. Borrowing Funds 12

E. Borrowing from the Reserve for

Replacement Account (R&R) 12

F. Requesting an Increase Under the

Budgeted Rent Increase Process 13

G. Requesting a Special Rent Adjustment 14

H: Distribution: W-3-1

Page

5\. Eligible Costs Under a CCC Plan 15

A. Computer Hardware 15

B. Computer Software 16

C. Distance Learning Equipment 16

D. Resident Development and Training

Courses 17

E. Security and Related Costs 17

F. Maintenance and Insurance Costs 18

G. On-line Service Coordinator/Service

Coordination 18

H. What Does \"Reasonably Financed\" Mean? 19

6\. Required Components of a CCC Plan. 20

7\. Local HUD Office Review. 23

8\. Monitoring/Reporting/Technical Assistance. 26

9\. Additional Information. 27

Attachment 1. Sample Proposal.

1\. PURPOSE: The purpose of this Notice is to encourage the development
and

placement of computerized learning centers (CLCs) with computerized

community connections plans in HUD-insured and assisted housing. This

notice describes the concepts, suggests methods of funding which may be

used, defines eligible costs, and states proposal contents. It also

outlines the local HUD-office review process and provides a sample

proposal (see Attachment 1).

State/Area Office Asset Management staff are encouraged to learn about

these concepts and provide copies of this Notice to anyone who requests

one. NOTE: THIS IS A TOTALLY VOLUNTARY PROGRAM FOR ALL OWNERS/AGENTS

AND RESIDENTS.

2\. BACKGROUND: The Department has observed the impact that experimental

programs have had in providing for economic and educational needs of

assisted housing residents. Many programs use a concept of \"place-

based\" development to meet the needs of the residents where they live.

Indirectly, these programs result in better neighborhoods and stronger

real estate.

The cost of implementing CLCs using project income has been prohibitive.

However, as the cost of computer technology falls, and the need for

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economic independence through jobs becomes crucial, the Department is

encouraging the use of technology in place-based development

opportunities to help residents of insured and assisted housing attain

jobs through job training, telecommuting, microenterprise development

(see Section II.D (1), following) and other job-creating strategies.

It is important for readers to remember that this is a time of extensive

change inside and outside the Department. This Notice presents one way

in which owners and residents can work together to prepare for and

manage change, and provide options for economic self-reliance.

A. WHAT IS \"COMPUTERIZED COMMUNITY CONNECTIONS\"? \"Computerized

Community Connections\" is an umbrella concept under which a variety

of public and private organizations, projects, project owners,

managers and residents are linked through computer hardware and

software for job-related, educational, and other community

purposes.

B. WHAT IS A COMPUTERIZED COMMUNITY CONNECTIONS PLAN (CCC Plan)? A

CCC Plan combines a Computerized Learning Center (CLC) (see Section

II.C, following) with distance learning and other tools in an

approach which addresses resident self-sufficiency desires through

meeting economic development and educational needs.

A CCC Plan for any one project or grouping thereof would address

some, if not all, of the following:

o resident involvement in all phases of planning and

implementation (required);

o priority focus on resident jobs, job training and job

development (required);

o purchase/donations of hardware/software;

o minor construction or taking units off-line for the CLC;

o appropriate staffing (an On-Line Service Coordinator (OLSC)

(see Section V.G, following) consultants, trainers, and/or

volunteers to operate the center;

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o participation of non-residents, if appropriate;

o off-site location(s), if appropriate;

o development of \"Resident Development Plans\" (RDP) to meet

resident training needs and goals (see Section D.1, below);

o linking the center to the world through distance or on-site

learning to the local public school system technical

institutes and community colleges/universities, for activities

such as childhood education, adult literacy, computer

literacy, typing skills, GED and associate and higher level

degrees, job training, microenterprise development and

telecommuting;

o linking the center to the world through networking to local

public services (e.g., welfare,, health, social security, and

through the Internet, other projects, neighborhood

organizations and the \"worldwide-web.\"

C. WHAT IS A COMPUTERIZED LEARNING CENTER? A computerized learning

center (CLC) is a facility and a process which, through

computerization, focuses on providing a variety of job and

educational opportunities to community residents. The CLC

facilitates:

o increasing resident self-sufficiency;

o expanding job opportunities within the project, and perhaps

the community - including microenterprise development; arid,

o creating a lifelong learning community.

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A CLC is appropriate for a majority of our 21,000 housing

developments. However, a CLC will mean different things in

different projects. For example:

o one project may concentrate on job training for young adults,

telecommuting for those that need jobs and provide Internet

linkages and activities for the elderly on the side,

o others may stress job training and computer literacy for

single parents/young adults; and,

o some may promote early childhood and teen-age education, with

job training/telecommuting as a sideline.

Under this Notice, the CLC can provide:

o a variety of early childhood education programs;

o typing and word processing skills;

o adult educational opportunities at the high school,

vocational, community college and university levels;

o personal and job-training software;

o facilitation of telecommuting to jobs; and,

o the development of microenterprises.

Programs offered may be computer-based by disk or distance learning

(with or without the provision of a traditional classroom

approach), usually in a project\'s accessible community space.

Additionally, a CLC may be:

o shared among projects, e.g., two close-by projects sharing one

center or a number of projects in the same area with a \"main\"

center and several satellites;

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o off-site in a near-by building or facility, if the majority of

support for the CCC Plan is from other-than-HUD resources;

and,

o offered to near-by community residents, only if project

residents have priority, much of the resources come from

sources other than HUD, and there is time/space available

after project residents are first served.

D. PHILOSOPHY OF COMPUTERIZED COMMUNITY CONNECTIONS: Computerized

Community Connections will improve the lives of project residents

by:

1\. Providing resources which could lead residents to jobs.

CLCs help residents of assisted and insured housing by:

o improving education levels through close assessment of

reading, language, math and other courses; and,

o providing job-related skills and jobs, directly or

indirectly.

All CLCs should plan for an On-Line Service Coordinator (OLSC)

(see Section V.G, following), who is responsible for tailoring

opportunities at the CLC to meet the needs of residents of all

ages.

There is also a role for the voluntary sector (e.g., churches,

synagogues, temples, mosques, Rotary, the Grange, Veterans of

Foreign Wars, Kiwanis, the Junior Chamber of Commerce, Police

Athletic League, Boys/Girl\'s Clubs, 4-H, Scouting, etc.), as

tutors, trainers or volunteers for the CLC.

o Resident Development Plan (RDP):

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The OLSC may help residents do an RDP, which is a plan

used to assist in establishing educational/career goals.

The basic components of the RDP are:

\- a skills and interest assessment, focusing on

educational basics;

\- a life goals planning section which determines what

the individual\'s strengths and ambitions are. It

includes both educational and job-related short-

term objectives and career goals; and,

\- a lifestyle management system which will help them

manage life changes necessary to achieve their

goals.

o Distance/on-site Learning:

Based on the RDP\'s, the OLSC may coordinate with local

corporations, the public schools, vocational training

schools, and college/universities to ensure that

appropriate courses are available, either through

disk/teachers/aides, or distance learning.

o Telecommuting:

The OLSC may assist residents who find it difficult to

travel to work, by making available computers for

telecommuting to jobs in the community.

o Microenterprises:

It is possible that some computer-based enterprises may

be started by residents with the help of the OLSC.

Micro-enterprises, developed through business incubators,

start-up programs and other partnerships, could involve

teenagers, adults and/or the elderly.

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o Daycare:

The OLSC may work with residents to expand an ongoing

center or join forces with a near-by center, if possible.

Also, formal baby-sitting might be structured, or perhaps

a pre-school component of the CLC could be designed as a

learning/play tool for \"tots\" while their mothers are in

class.

Alternatively, the OLSC might work with residents to set-

up a cooperative day-care center, with fees to cover

materials and supplies. This might involve problems with

local standards and rules, however, which could slow

things down appreciably.

2\. Providing educational and job training programs designed to

help residents improve their lives:

The CLC is a place where people can access computer software

which provides them access to the education and skills

necessary for the 21st century.

o Multimedia:

Multimedia software has a documented beneficial influence

in improving the learning experience of both children and

adults in activities such as: Preparing for the GED,

improving math skills, computer literacy, or providing

employment readiness training.

o Job-training:

There is a need for all types of job training, whether

brought into the CLC on disk, taught in person, or

through distance learning. For success,

business/educational/voluntary association partnerships

are critical.

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o Behavioral Modification:

There may be interactive group training in life-coping

skills classes and competency-based training. Examples

of such subjects are:

\- employment (job applications; employment contracts

and forms,, resumes, job search, how to interview,

what employers want);

\- banking and budgeting (requirements, use and

maintenance -of checking accounts, spending

decisions, purchasing and the payment of bills,

personal budgeting); and,

\- credit and loans (credit and credit cards,

security, payback, types of loans, interest).

As part of the overall program, HUD has joined the Citizen

Education Fund\'s effort to enlist parents and children to

commit to education and drug-free, violence-free schools, as

part of a \"practical strategy for success in school:

Discipline, diligence and respect.\"

One of the goals of the CCC Plan should be to reach 100%

support of this effort by the residents. A plan to do so must

be part of the submission. One way to achieve this might be

to obtain pledges from both parents and children and provide

incentives in the form of free software or additional computer

access when the entire project has agreed to join the effort.

3\. Enhancing interaction among residents and providing access to

the larger world:

o Internet:

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Through the Internet and electronic mail, residents can

reach out to their neighborhood, libraries, social

service providers and the world.

Through working partnerships with other properties,

residents could interact on issues such as parenting and

organizing. On-line discussions become possible for any

topic of general interest. With on-line access to

distance learning, job hunting, telecommuting, and

libraries, jobs can become a realistic component in

resident\'s lives, and students can easily find

appropriate research material for homework.

o Mentoring:

On-line mentoring programs could also be established for

the elderly/adults/youth by voluntary organizations,

which could provide younger people exposure to writing

skills while building a friendship with an older member

of the community.

The above examples represent a fraction of the possibilities

for computerized community connections. Field offices,

owners, management agents, and residents are encouraged to use

the resources of the community - to create a variety of

solutions to improve the quality of life in multifamily

housing.

NOTE: Ending Welfare Dependency:

Proposers must recognize the role of local, State and

Federal welfare offices when designing their program and

develop linkages with these offices. Proposers should

look into what types of education, training and jobs will

qualify for allowances and incentives. They should also

carefully look into how both welfare and housing benefits

might be adversely affected, at least in the beginning of

such a program, and what waiver or exceptions to rules

might be beneficial and obtainable.

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3\. PROJECT ELIGIBILITY: All insured and assisted projects, under any

section of any of the Housing Acts are eligible to submit a CCC Plan for

approval, and when approved, set up and operate a CLC. Such projects

include, but are not limited to HFA and state-financed, Section 8

project-based, 221(d), 236, 202, 202/8 and 811. On HUD-held projects

with housing finance agencies, HUD staff may negotiate for HFA dollars

to pay CCC Plan costs.

4\. FUNDING OF THE CCC PLAN: Owners/agents of HUD-assisted or insured

properties may utilize any of the following methods (or combinations

thereof) for CCC Plan funding. The use of non-HUD resources, e.g.,

equipment, software and staffing should be encouraged through outreach

efforts.

The following funding methods are in priority order of consideration:

A. OBTAINING GRANTS FROM OUTSIDE SOURCES: Owners, management agents,

and resident organizations (where they exist), are encouraged to

seek out cash grants, in-kind support, or donations from state and

local government, educational district partnerships, private

foundations, or corporations to fund some or all components of the

CCC Plan.

B. USING THE PROJECT FUNDS/RESIDUAL RECEIPTS ACCOUNT: Owners may

request the release of funds from the residual receipts account for

the purpose of implementing some or all of a HUD-approved CCC Plan

(see Section 24 CFR 881.601(e)). Working in partnership with

owners, HUD will review the request, considering condition of the

building(s) and current or projected needs for the funds. If the

residual receipts requested are not required to maintain the

habitability of units\' or other projected building needs, approval

for CCC Plan use will be granted. Release of-residual receipts is

an increase in owner\'s initial equity, wherever allowed (See

section IV.C, below) for which distributions may be paid to the

owner at the approved rate.

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C. INCREASING THE AMOUNT OF THE OWNER\'S INITIAL EQUITY INVESTMENT IN

THE PROPERTY: Owners of limited distribution property may increase

the amount of their initial equity investment (and in turn the

yield on their distribution) by providing funding for the HUD

approved CCC Plan in the form of a non-repayable, capital advance

(see Section 24 CFR 881.205). Owners who choose to utilize such

methods of funding should inform HUD of the amount which they wish

to contribute to the CCC Plan. The increased equity payments will

result once the total amount of funding has been contributed, the

CLC is fully established and the CCC Plan is implemented while the

owner is permitted to take an increased distribution, a rent

increase will not be granted to increase project income for the

additional yield.

D. BORROWING FUNDS: Owners may choose to obtain a loan from a lending

institution in order to pay for the hardware and setup costs of the

CCC Plan. Repayment of this loan may come from surplus cash or

other outside sources with HUD approval, so long as a rent increase

is not required to support the loan and the loan will not

jeopardize other services which the property has agreed to provide.

Loans obtained for this purpose may not be secured by the property.

E. BORROWING FROM THE RESERVE FOR REPLACEMENT ACCOUNT (R&R):

1\. Projects other than 202/811 PRAC: Owners of HUD insured or

assisted properties who are required to maintain a Reserve for

Replacement Account (R&R), per Handbook 4350.1 REV-1, Chapter

4, \"Reserve Fund for Replacements\", may request and HUD will

consider approval of funds to be borrowed against this account

for the purpose of implementing some or all of the HUD-

approved CCC Plan. The owner may borrow from the account

consistent with Handbook 4350.1, Chapter 4-11. HUD recommends

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that owners retain about \$1000 per unit, for required repairs

and replacements.

The amounts in the R&R account should be analyzed in light of

anticipated repair/replacement needs using personal knowledge,

inspection reports and evaluations. Owners should be able to

project how much money will be needed at specific points in

the future.

If an owner chooses to utilize this method of financing for

the CCC Plan, he/she must submit a scheduled repayment plan

illustrating how repayment will be made, and showing that such

repayments will not interfere with projected facility needs.

(For example, the facility borrows 70 percent of the R&R fund

and schedules an eight-year payback. There is a need for

boiler replacement in four years and there should be

sufficient funds available for boiler replacement at that

time.)

2\. 202/811 PRAC Projects: Owners of Section 202/811 PRAC

projects may request, and HUD will consider approval of,

release of funds from the R&R account for the purpose of

paying for some or all of a HUD-approved CCC Plan, if these

funds are generated from the \"Savings Incentive\" (see, for

202/PRAC projects, Handbook 4571.3 REV-1, Chapter 1, \"General

Introduction to the Section 202 Program\", and for 811/PRAC

projects, Handbook 4571.2, Chapter 1, \"General Introduction to

the Section 811 Program.\" Before approval, HUD will consider

current or projected needs for the funds.

F. REQUESTING AN INCREASE UNDER THE BUDGETED RENT INCREASE PROCESS:

In properties where rents are set under Handbook 4350.1 REV-1,

Chapter 7, \"Processing Budgeted Rent Increases\...\", owners may

request a rent increase to cover some or all of the costs of the

HUD-approved ccc Plan. Rent increases are subject to HUD\'s

discretion and availability of funds.

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Residents at partially assisted properties can review and comment

on the plan under Section 24 CFR 245. Resident review and comment

procedures are also outlined in Handbook 4350.1 REV-1, Chapter 7

and Handbook 4381.5 REV-2.

G. REQUESTING A SPECIAL RENT ADJUSTMENT: Section 8(c)(2)(B) of the

U.S. Housing Act of 1937 authorizes HUD to offer these special rent

adjustments in the maximum monthly rent for units under a Section

8 contract in a limited number of circumstances. It provides the

following:

\"The contract shall further provide for the Secretary to make

additional adjustments in the maximum monthly rent for units

under contract to the extent he determines such adjustments

are necessary to reflect increases in the actual and necessary

expenses of owning and maintaining the units which have

resulted from substantial general increases in real property

taxes, utility rates, or similar costs which are not

adequately compensated for by the adjustment in the maximum

rent..\" (emphasis added)

Pursuant to this provision and in order to determine whether CLC

costs qualify for consideration for a special rent adjustment under

the \"similar costs\" provision of the statute, the costs have to

meet the following standards.

1\. Are the cost items \"similar\" to those identified in the

statute and regulations, i.e., necessary expanses of owning

and maintaining the units within the facility.

2\. Has there been a \"substantial and general increase\" in the

cost at issue? In the case of components of CLCs and

comprehensive community development, is there a causal

relationship between lack of economic and educational

development training among residents in the project and the

increased costs?

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3\. Has the increase been \"general\", i.e., has this increase been

experienced by owners of other than the immediate project and

projects other than Section 8 assisted?

Owners whose costs meet these three standards will satisfy the

legal requirements for consideration for special rent adjustments

(see Handbook 4350.1 REV 1, Chapter 34, \"Calculating Rents

Utilizing Annual Adjustment Factors\").

5\. ELIGIBLE COSTS OF A CCC PLAN: The following components of a CCC Plan
are

eligible costs for funding under Section IV, prior. In instances where

hardware and installation exceed \$15,000 per project, owners must show

how they plan to conduct outreach for contractor services and solicit

minority-owned and women-owned businesses.

A. COMPUTER HARDWARE: This includes all costs necessary to set up a

CLC at the property. Examples would include (but are not limited

to):

\- individual computers;

\- appropriate wiring necessary to connect all equipment;

\- a network server;

\- special phone line(s), including fiber-optic cable, where

appropriate; and,

\- appropriate training.

Please note that program designers must:

\- ensure that computers have sufficient power, multimedia

equipment as appropriate, and expansion slots for the purpose

intended, to insure that given a radically changing market,

they will not be completely obsolete within 18-24 months;

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\- address compatibility, as appropriate, with equipment used by

local school systems; and,

\- insure that staff are effectively trained in the use of all

equipment.

B. COMPUTER SOFTWARE:

Eligible costs include:

\- multimedia educational software for students;

\- software designed to provide educational and job training

skills to residents;

\- software necessary to. provide residents with resources to

telecommute from the property (e.g. word processing,

spreadsheet and database programs, or integrated programs);

\- software designed to assist residents in creating

education/job training plans and working toward implementation

(see Section V.D, below);

\- appropriate training; and,

\- at least one community Internet account which permits

residents access to the World Wide Web, Gopher, FTP and

Telenet.

Fees associated with personal Internet accounts may NOT be paid for

with project income or other HUD funds.

C. DISTANCE LEARNING EQUIPMENT: Costs for videocasting and distance

learning equipment may be part of the program, IF FUNDING PERMITS.

Owners/agents/residents and HUD field offices (providing

assistance, guidance and recommendations, as appropriate), should

explore the feasibility of obtaining distance learning equipment in

partnership with educational institutions and other CLCs; such

equipment is very expensive.

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Planned use of this equipment (e.g. in a partnership with a local

school district, community college, voc/technical institute or

four-year college to provide a certificate program using the

equipment), must be explained and documented.

D. RESIDENT DEVELOPMENT AND TRAINING COURSES: In some cases

owners/managers may choose to use some programs in the CLC which

are not based in software, but come \"live\" from community

organizations and institutions. Standards and certificates should

be designed for any internally-developed courses; use of outside

courses/training should include the same standards and certificates

as at the regular location.

E. SECURITY AND RELATED COSTS:

1\. Security: Costs necessary to secure computer hardware and

distance learning equipment MUST be built into the plan. In

general, this includes the ability to lock the lab/offices,

prevent forced entry or equipment removal, and provide, visual

oversight from the adjacent rooms or offices, whenever

possible.

In planning security, thought should be given to developing an

effective, discrete, system. HUD will not approve security

plans involving \"caging\" or chaining equipment.

2\. Space Use/Retrofit: Costs necessary for minor retrofit are

allowable. Examples are:

\- put up non-load bearing walls and doors;

\- partition existing community space and provide for both

office and a storage area for the OLSC; and, provide for

a locked center/office/storage area.

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Proposers may also consider removing 1-3 units from residency

(by moving people into vacant units), Or using vacant units

for office space, day care or perhaps the CLC itself.

Costs for any space (in either case) which must be made

accessible to the disabled are also eligible.

F. MAINTENANCE AND INSURANCE COSTS: The CCC Plan should state how

maintenance, (including installing, training on, and maintaining

the hardware and software) and insurance costs for the equipment in

the CLC will be covered.

G. ON-LINE SERVICE COORDINATOR/SOCIAL SERVICES SERVICE COORDINATION:

All CCC Plans submitted for approval provide for the funding of an

OLSC directly or through third parties and allow for at least a

portion of the time of the Social Services Service Coordinator

(SSSC) (or management staff) to work with the OLSC on community

outreach.

If a SSSC is not already present at the property, management may

consider hiring one, if appropriate, per Notices H-94-98 or H-94-

99, or Handbook 4381.5 REV-2, \"The Management Agent Handbook\",

Chapter 8, \"Service Coordinators\"), as part of this proposal.

The OLSC\'s major responsibility is the implementation of the CCC

Plan, and working with the SSSC, as appropriate. Qualifications

for the OLSC are based on Notice H-94-98, Section IV; when computer

literacy sufficient t.o run the CCC Project is added, the SSSC

becomes an OLSC. Also consider residents, computer-trained and

people-focused teenagers, grants or other methods of providing the

OLSC without using HUD dollars; or an OLSC aide, paid at least

minimum wage. Responsibilities of the OLSC are in the context of

Notice 94-98, Section IV, but restricted to operation of the CCC

Plan.

A SSSC (or other management staff which provide this function) is

useful adjunct to the CCC Plan for bringing in additional

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supportive services and other activities for the residents; the

intent is to improve the project and link the residents more

effectively to the whole community.

The CCC Plan must outline how the OLSC will integrate the RDP and

technology into the CLC. It should also address the degree to

which the SSSC (or other management staff) play a role both through

coordinating general outside services for residents, and work with

the OLSC to bring specific community resources into the facility

for the CCC Plan.

H. WHAT DOES \"REASONABLY FINANCED\" MEAN?

A reasonably financed CCC Plan:

o Has rents which do not exceed 120 percent of FMRs.

o 202/8/811\'s residual receipts accounts are maintained at

\$500/unit or more. This is a statutory threshold.

o The Reserve for Replacement Account for non-202/811s remains

consistent with Handbook 4350.1 REV-1, chapter 4.

Any loan should be within the remaining term of the Section 8

contract and consider future replacement needs. There should

not be a loan which would exceed foreseeable available sources

of funding (e.g., Section 8 contracts expiring before the loan

is repaid or require repayments not supportable by rents

available from a recapitalized loan (e.g. , under Mark to

Market).

o Keeps the loan to value (LTV) ratio on the original mortgage

to be at least 90 percent. (The owner\'s initial equity on

original limited distribution loans was normally 3-5 percent.

This plan would permit that to be increased to, but not exceed

10 percent.)

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The LTV ratio ONLY applies to Limited Dividend projects

o Provides an adequate plan for continued operation after the

start-up year, and self-sustainability after the second year.

o Provides for an adequate measure of third party resources to

supplement the HUD resources, as proposed and appropriate.

A plan which does not meet all of the above criteria will not be

approved by the local HUD office.

6\. REQUIRED COMPONENTS OF A CCC PLAN: All projects wishing approval of
a

CLC/CCC Plan must submit a proposal to the Asset Management Branch of

the HUD local field office in whose jurisdiction the project is located,

answering the following questions.

A. What specific measurable objectives will the project be designed to

achieve for participating residents?

B. What are the action steps necessary to implement these objectives

for participating residents?

C. How will participating residents benefit from the program.(i.e.,

type of programs)? How will they be involved in planning? Is the

Citizen Education Fund pledge addressed?

D. What partnerships have been built which can enhance the CLC (e.g.

schools, local government, local businesses or social services

which can offer programs at the CLC, or donated computer or other

equipment, software or services/staff)?

E. Who will direct the program, what staff will be responsible for the

equipment and what will the staff do? What will the CLC\'s

operating schedule be?

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F. What is the proposed space/security plan/monitoring arrangements?

Does the retrofitting design (if appropriate) meet accessibility

requirements?

G. What is the first year\'s budget, and how will the CCC Plan be

funded initially? How will personal accounts, for internet and

other third party charges (if part of the proposal) be monitored

and collected? What outreach will there be to minority/women-

owned, firms if hardware costs are over \$15,000?

For the various funding mechanisms, attach a breakdown of the

estimated costs, and commitment letters from any third party

grantors or loan providers for the first year:

o Section 202 projects may use residual receipts to the extent

that they are over \$500/unit. This is a statutory threshold.

Other elderly or family projects may use all available

residual receipts. All facilities are subject to Handbook

4350.1 REV-1, Chapter 25, \"Residual Receipts.\"

Owners/borrowers must submit a copy of the residual receipts

account and balance for verification, if used.

o Owner/borrowers using the AAF rent increase process must first

establish that revenues from the project are not adequate to

pay for the CCC Plan.

This may be demonstrated as follows:

\(1\) the owner/borrower, must determine if there is sufficient

cash throw off to fund some or all of this proposal. To

do so, complete Form HUD-9833B, Section 8 Annual Contract

Rent Adjustment Worksheet, Part G, 1-14, \"Special

Adjustments for Taxes, Insurance or Utility Cost

Increases\" (see Appendix 2 of Handbook 4350.1 REV-1 and

the instructions in Chapter 34).

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Owners are instructed to add an entry for \"Other\" (to

cover \"similar cost\" language in the statute and

regulations) (see Section IV.G, prior), in the blank

space on the right side of the form next to the entries

for \"Taxes\", \"insurance,\" and \"utilities,\", and specify

for which component of the proposal is the special

adjustment.

\(2\) If the net cash throw-off is less than the distribution

allowance, the owner may request a special rent

adjustment to fund a portion of the proposal. However,

if net cash throw-off exceeds the distribution allowance

as calculated for the purpose of the special adjustment,

the owner may use the funds in excess of the allowable

distribution to partially or fully capitalize the

proposal.

In cases where all the cash throw-off is taken as

distribution or surplus cash, the FO must determine what

is an appropriate amount to be contributed to the

program.

\(3\) The owner/borrower must submit a copy of the Form HUD-

9833B.

o Budget-Based Rent Increase - Use guidance in Handbook 4350.1,

REV-1, Chapter 7.

o Reserve for Replacement Account - Use guidance in Handbook

4350.1 REV-1, Chapter 4.

For 202/PRAC projects, Handbook 4571.3 REV-1, Chapter 1 and

Handbook 4571.5, Chapter 5, and for 811/PRAC projects,

Handbook 4571.2, Chapter 1 and Handbook 4571.4, Chapter 5.

o Increase of Initial Equity Balance, where appropriate.

H. How will operations be continued after the start-up year? What

will the annual operating budget be? How will the project become

self-sustaining after the second year?

23

I. How will participation in the program\'s operation, such as

educatiOn and job training programs be tracked and evaluated? How

will you assess/evaluate the success of the program? Is there

agreement to cooperate with any HUD reporting requirements?

7\. LOCAL HUD OFFICE REVIEW: Local HUD office staff (Resident
Initiatives

Specialists (RIS) and Asset Managers (AM) are encouraged to work with

applicants in the preparation of their CCC Plans. The Department would

like to develop as many workable programs as possible, in both single

and multi-site approaches, some of which may eventually be national

models.

Plan review will be done by AMs, together with the RIS, as appropriate.

(A&E staff should be approached for assistance if minor retrofitting is

proposed.)

Staff should review the proposed CCC Plan submitted. CCC Plans with

deficiencies must be revised. Headquarters encourages HUD office staff

to work with interested applicants on an ongoing partnership basis, to

minimize any final reviews. The criteria are:

o The degree to which a complete, overall plan is provided, assuring

that each component is sufficiently developed, effectively answers

all questions, and links the appropriate objectives, action steps

and results. (RIS, AM, A&E).

NOTE: HUD does not want only \$200,000 after-school childhood

development centers, but concepts that address at least: Jobs

and various forms of training and life skills learning (in

some capacity as it relates to obtaining or upgrading

employment).

o The degree to which the facility/CLC has formed partnerships with

neighborhood and community entities that support the plan as

proposed (RIS).

o The degree to which the facility/CLC is provided with adequate

space, staffing, volunteer or other coverage, appropriate security

and accessibility for the disabled (AM, RIS, possibly A&E)

24

o The degree to which the program is adequately funded through third

parties and/or the project, and resident fees (AM, RIS).

This will include, as appropriate:

\- consideration of whether the facility is large enough to

support the program efficiently and effectively as proposed,

and has enough funds to make it work.

\- some evidence that project owners/ management/residents have

looked for other sources of funding before using HUD dollars

other than residual receipts.

\- residual receipts-review, and/or, reserve and replacement

review for other than 202/811 PRAC projects, to make sure that

the dollars are available.

These must include consideration of the condition of the

facility (not 202/811 PRAC) and match remaining dollars in the

accounts against planned needs for the facility.

For Section 202 PRAC projects, see Handbook 4571.5, Chapter 5,

\"Cost Certification,\" and for Section 811 projects, see

Handbook 4571.4, Chapter 5, \"Cost Certification.\"

\- A review for available contract authority (on both budget-

based and AAF projects)

The AM/Contract Administrator must review the project\'s

contract authority to determine if it is adequate to meet the

projected demands for housing assistance for the remaining

incremental terms of the contract, because it would be paid

out of the contract\'s contract and budget authority. If

contract authority is inadequate, a request for amendment

funds would need to go to Headquarters.

25

Review the HUD-9833B, Section 8 Annual Contract Rent

Adjustment Worksheet, Part G, \"Special Adjustments,\" and

Chapter 34 of Handbook 4350.1. In particular, Paragraphs 34-6

through 34-8 provide general processing instructions,

including a walk-through of how to compute the actual dollar

amount of the special adjustment to approve applicable \"back-

out\" procedures.

The expiration of a special adjustment does not constitute a

\"reduction in rent.\" The owner, by accepting the special

adjustment, agrees to this reduction when the need for the

rent increase can no longer be justified.

\- A review to insure that any rent increase approved is within

the 120% of FMR limit.

\- owner commitment review, when an owner equity contribution is

involved (AM).

\- copies of other commitments, such as grants, etc. Make sure

they are for the purpose stated in the proposal, and are

either firm, or committed contingent on plan approval (AM,

RIS).

o The degree to which proposals involve multiple site/non-resident

involvement.

\- If a multiple project proposal, have costs been effectively

prorated and have the sites been effectively distributed among

the projects?

\- If people living in the community may use the CLC, do

residents have priority, are the majority of costs paid for by

third-party resources, and is space/time available for non-

residents after resident needs are covered?

\- If the CLC is located off-site, are the majority of resources

assigned to the program covered by third parties other than

HUD? Are there appropriate safeguards in place to cover HUD\'s

portion of the investment?

26

o The degree to which ideas for continued operations for year two and

plans for the self-sustainability after year two:

\- address all components of the plan;

\- provide some indication how costs can be covered for year two;

and,

\- address self-sustainability after year two.

Reminder: A sample CCC Plan for \"Computerized Community

Connections\" is at Attachment 1.

8\. MONITORING/REPORTING/TECHNICAL ASSISTANCE: Local HUD offices are

requested to notify the Program Management Division (see Section IX,

below) in Headquarters when CCC Plans are approved. Please send by memo

or cc:mail the name and location of project; name of owner; and, a short

description of the project (e.g., number of units, resident composition,

description of property and brief description of the proposal).

Monitoring is conducted in accordance with the requirements and

procedures set forth in Handbook 4350.1, Chapter 6, \"Project

Monitoring\", and Handbook 4350.5, Chapter 15, \"Project Monitoring\",
and

Chapter 16, \"Field Office Monitoring Responsibilities of Subsidy

Contract Administrators\". When doing an on-site review, Asset

Managers/RIS\' should include a review of the implementation of the

facility\'s program, compared to the approved proposal, review of

appropriate files and documents. The financial review should include

documentation the project maintains for costs incurred.

Findings should be written up in narrative format as an ADDENDUM to the

HD-9834-B \"Management Review Questionnaire\" and summarized on the

\"Management Review Report\", under Section V, General Management

Practices, which is sent to the project manager.

Field offices must submit an annual report to HQ on each approved

program, in a format which will be provided later.

27

Reporting for projects will be developed over time Housing hopes to have

a system in place within six months.

Additionally, Headquarters plans to set up a Bulletin Board on the LAN

and have regular conferences calls during the start-up phase with field

offices with approved projects under this Notice and with project staff

as needed. Headquarters staff will be available to provide technical

assistance, as appropriate.

9\. ADDITIONAL INFORMATION: For Technical assistance regarding this
Notice,

local HUD office staff should contact the Program Management Division,

attention: Jerry Nachison at (202) 708-3291 x 2485, or write via cc:mail

to Jerold S. Nachison at FHCPOST2 for 120 days after the publication

date of this Notice. After the initial 120 day period, local HUD staff

should contact the appropriate Desk Officer in the Operations Division.

For those who want to communicate quickly in the short term, both

projects and field offices may contact Tom Cusack, Director, Multifamily

Division, Portland, Oregon, who has a home page on the Internet

concerning this subject. Its address is

\"http://www/teleport.com/\~motom/\".

Potential applicants are requested to contact the Asset Manager who

normally services the project or the local HUD office\'s Resident

Initiatives Specialist.

Nicolas P. Retsinas

Assistant Secretary for Housing-

Federal Housing Commissioner

Attachment 1

A SAMPLE COMPUTERIZED COMMUNITY CONNECTIONS PLAN (CCC PLAN)

BELLE HAVEN MANOR

FHA 032-023456

SECTION 8 #: xxO5-L000-029

1550 New Eastern Road

Anycity, ST 01235

SUMMARY

Belle Haven Manor is a 110 unit, Section 236 project which is 100%

Section 8. It contains 327 residents, of which 118 are adults, 45 are

children below 6 years of age, 85 are children 6-to 13, 58 are children
13 to

18 and 24 are young adults 18 to 21. There are six vacant apartments. No

other projects are involved in this proposal; only residents will be
served,

on-site.

This plan proposes to create a computerized learning center (CLC) in a

portion of the project\'s community space, and will use two residential
units

as part of this effort. The CLC contains 10 computers networked to a
main

server. Service delivery will be accomplished through a cooperative
venture

between the housing complex and existing or created site and
community-based

resources. Children and parents will be requested to sign the Citizen

Education Fund pledge as they join the program. The onsite part-time
social

services service coordinator (SSSC) will work closely with the on-line

service coordinator (OLSC) in assuring that outside resources are
brought In

and that funding for future years can be obtained.

1\. Objectives:

A. Reducing Welfare Dependency by enabling at least 25% of the adult

residents on welfare who participate in the program to get off

welfare into decently paying jobs within two years.

B. Teaching Basic Skills and Increasing Adult Education Level by

making educational programs available to 100 percent of the adult

residents who participate in the program within one year of program

start-up.

C. Improving Academic Achievement of School Aged Children by

attempting to raise the educational level on standardized tests of

50% of the children who participate in the program, to the

appropriate grade level within 24 months of start-up.

D. Improving Social Service Accessibility by making the programs of

local agencies available to at least 25% of the resident families

who participate in the program, through the CLC the first year.

E. Expanding Community-Based Job Training to at least 50% of the adult

residents who participate in the program, through the first year

and job opportunities through telecommuting for at least 15 persons

by the end of the first year.

F. Building a Cohesive Community by creating useful ongoing linkages

with at least 5 other community groups the first year.

2\. Action steps:

A. Management will contract for the retrofitting of the community

building within 30 days of plan approval.

B. A On-line Service Coordinator (OLSC) will be hired within 45 days

of plan approval.

C. Retrofitting of space completed within60days of plan

approval.

D. The OLSC will finalize agreements with initial third party

providers and voluntary organizations within 75 days of plan

approval to provide all activities and staff under the plan.

E. The OLSC begins training of both resident and community volunteers

approximately 75 days after approval of plan.

F. Computers purchased/installed within 75 days of plan approval;

G. Testing of software by the OLSC and the residents begins about 75

days after plan approval.

H. First computer literacy classes/adult/child-oriented classes begin

90 days after plan approval.

I. Regular classes/distance learning/public operating schedule in

place with 120 days after plan approval.

J. The OLSC and service coordinator begin discussions with third

parties for continued funding of operations for the second year

about 200 days after plan approval.

K. First telecommuting adults start positions 250 days after plan

approval.

L. Necessary funding/equipment assured for second year 300 days after

plan approval.

3\. Benefits to Residents/Program Description:

A. Reducing Welfare Dependency/Improving Employability.

Welfare is the major source of support of residents in the project.

Sixty-nine percent of the adult population are single female head

of household receiving AFDC, food stamps and housing assistance.

The CLC will become a \"one-stop\" shop for services needed by

residents. The offered services will increase opportunities for

welfare recipients to become self-sufficient. The services will

include at least: specialized software to assist residents in

planning their way off welfare, job skills training, academic

remediation, basic skills training, employability skills training

and interpersonal skills training. The staff also want to develop

microenterprises and telecommuting options.

Additionally, through agreements with Downtown Cable, Downhome

State University and Frank\'s Lumber, we will set up distance

learning classes and job training courses in areas such as customer

service, cashiering and data entry. At least IS jobs are already

guaranteed to program graduates; others will be developed by

project staff.

Finally, we will work closely with the local welfare offices to

ensure that all incentives can be targeted. We do not intend to

damage someone\'s benefit stream.

B. Teaching Basic Skill/Education Levels.

Lifelong learning is key. In conjunction with Resident Development

Software (RDP), we will integrate educational programs into the CLC

utilizing both a computer network and distance learning video

technology. All software will be tested by a resident committee,

with the help of the OLSC.

The RDP outlines educational and employment goals and may provide

alternatives to traditional means of achieving them. The software

will include a financial tracking system to assist residents in

managing new sources of income as they transition from welfare to

work and assess the impact of that income on their current subsidy

levels. Finally, it will permit residents to set personal goals

and assist them in restructuring their lifestyles to meet the

goals.

Based on information received from the RDPs, the Social Services

Service Coordinator (SSSC) will work with the On-line Service

Coordinator (OLSC) of the facility and other OLSC\' s in the

community to coordinate with local educational organizations to

create distance learning degrees, and other courses tailored to

expressed interests. For all classes developed though the CLC (not

by external education programs), the staff will develop standards

and criteria for passing, and will issue certificates upon

completion.

Life skills resources such as homemaking, parenting, managing

children, budgeting and shopping also will available through the

CLC\'s Internet access and the greater community\'s own World Wide

Web Homepage as well as supplemental network software. Electronic

discussion groups may focus on resident issues such as child

rearing, by connecting inexperienced and experienced parents to

determine problem solutions.

Additionally, there will be a resident-run cooperative day-care

center affiliated with the CLC. The start-up process with local

government will be coordinated by the SSSC and the resident

council. It will be a place for mothers to leave children 12 and

younger while they are taking courses at the center. An hourly fee

structure will be devised, to pay for materials and supplies, at

least initially. It may evolve into a more permanent center over

time.

C. Improving Academic Achievement of School-Aged Children.

Fifty-Eight percent (58%) of the population in the property is

under the age of 20, it is imperative that the CLC address the

needs of our school aged children. While the focus will be on

children who are academically deficient, all children will be able

to participate in some facet of the CLC. The CLC will work to

enhance other efforts that are in place within the community.

For example, Dr. Fred Myers, a math teacher at Sycamore High School

uses electronic basketball games to teach math. The center\'s

network could serve as a vehicle for providing expanded exposure to

other area programs such as Taking Risks, a program sponsored by

the local government for troubled teens. The CLC could provide an

electronic e-mail system in which the teens could interact with

counselors and with each other.

Youth education development supported by the CLC will include

educational multimedia software targeted at the needs of the

population of school age (and younger) children. The CLC will

provide \"Electronic Clubs\" to supplement the public school

education process by providing students opportunities to interact

electronically on specific issues in the classroom setting. Also,

volunteers from the Rotary club will be assigned as tutors for

children and/or young adults. Children and parents will be

encouraged to sign the Citizenship Education Fund pledge (see

sample pledge form). Youth development will also provide more

traditional \"trips to points of interest, Finally, a donation

program for computer hardware and software may be developed to

provide computers for the children to do homework and access the

web and other services. We will approach local businesses and the

local office of the General Services Administration. If such a

program is developed, it will have specific requirements for

personal goals and community service, in order for the youngsters

to qualify for a computer. If successful, the donation program may

be expanded to the adults, over time.

D. Improving Social Services Accessibility.

All residents will have assistance in locating and accessing a full

array of community services and agencies. The OLSC will assist

residents in determining their needs and communicating them to the

appropriate social service or community agency. Locating and

accessing can take place on-line, through the pros World Wide Web

Homepage, over the telephone or in person.

E. Expanding Community-Based Job-Training and Jobs.

The Association of OLSC\'s will work to solicit employers and

establish a telecommuting program in which residents may

participate once they have passed a base level test of computer

literacy and specifically tailored job-training. Additionally, we

plan on developing at least one microenterprise to employ residents

from within the project after successful completion of training

programs.

Ideally, this approach will reach the numerous female heads of

households for whom the normal costs of entering the work force,

such as transportation, day care, and office dress, make obtaining

employment in the traditional job market cost prohibitive.

The center will also provide employment readiness training.

Additionally, by agreements made with Downtown Cable, Downhome

State University and Frank\'s Lumber, we will set up distance

learning classes and job training courses in customer service,

cashiering and data entry. About 15 jobs are already guaranteed to

program graduates; others will be developed by project staff over

time.

F. Building a Cohesive Community.

Through the use of a community-wide electronic discussion groups

sponsored by the Resident Association, this project hopes to

develop and focus the resident\'s interest in their community. The

discussion group will work toward capturing the community\'s hopes,

dreams and visions of what can be done to make the community a

better place. These discussions will help focus resident

association meetings on changes which residents would like to see

and what resources need to be coordinated.

G. Planning.

Residents have been involved to date and will continue to be part

of all planning. The resident association approved the concept of

the project. It has set up several subcommittees which are working

with the SSSC to explore planning for the day care center and they

have worked out the tentative center\'s operating schedule. They

will also work with the OLSC, when hired. They will approve all

software, and will have an opportunity to interview the proposed

OLSC, student teacher and teaching aide before hiring.

As we get into full operation, the OLSC and other staff, as

appropriate, will develop an incentive program to try to get 100

percent support from the residents.

4\. Program Partnerships:

The CLC will be a part of a community network of 10 other CLCs. The

OLSC\'s attached to these other CLCs have formed an Association of OLSCs

to coordinate resources to support the network. We intend to join at

the first opportunity.

Resources which have been coordinated to date include:

\- Sycamore High School will provide a homepage on the network

outlining homework assignments, school events and teacher e-mail

addresses. Counseling for troubled teens and homework \"clubs\" for

each grade will also be available on-line.

\- The Internet Club. The local Internet Club will provide 2 free

one-year internet subscriptions to the property and will assist

residents in obtaining subscriptions when they want their own

accounts. In addition to providing Homepage programming support to

the resident association, this club will also provide volunteers to

staff the CLC during public access hours.

\- Downtown Cable Service will donate five of the computers and will

provide jobs to residents through the community\'s telecommuting

program. The company will provide jobs and on-the-job training to

residents who successfully complete the CLC\'s Computer Literacy

Program in either customer service or data entry.

\- Frank\'s Lumber and Hardware, Inc. will provide on- the-job training

for data clerks, cashiers and customer service representatives who

have a GED and computer literacy.

\- Downhome State University will provide at least one student

teacher/grad student per semester to teach computer literacy/other

courses.

\- Downtown Community College will provide a full-time teaching aide

to work with students during scheduled class hours.

\- Robert Hutchins Educational Foundation will fund the OLSC for at

least the first year of the project, and will donate the distance

learning equipment.

5\. Staffing and Schedule:

A full-time OLSC is part of this plan.

The OLSC will focus on developing the programs outlined above as well as

a computer literacy training program for all property residents. In

addition, the OLSC will publish a monthly newsletter for all residents,

coordinate and train volunteers in the facility/community to who wish to

serve as CLC assistants during public access hours. He or she will also

work closely with the student teacher and the teaching aide, who will do

much of the actual teaching and providing guidance to residents in the

CLC, and set up an operating schedule which includes the aides and

volunteers.

The OLSC will also keep logs of all class attendees and follow-up on a

regular basis with those who may not be attending on a regular basis, or

apparently \"dropping out.\"

Finally, the OLSC will work closely with the part-time SSSC, who will

devote an estimated 10% of his/her time to support this program.

The, proposed schedule for the CLC is as follows:

9 a.m.-12 p.m.: Computer Literacy Training for Adults

12 p.m.-2 p.m: Public Access Hours

3 p.m.-4 p.m: After School Program (K-6)

(NOTE: This program will continue in the community room with a

homework tutoring program from 4-5 p.m.)

4-6 p.m: After School Program (7-12)

6-10 p.m: Public Access Hours

Residents who need to use the CLC for telecommuting purposes will always

have priority access to the computers. However, as the number of

residents who telecommute grows, we will have to consider either adding

equipment and setting up a separate space for telecommuters, or working

out a way that they can hook up in their units.

6\. Space-accessibility/Security/Monitoring:

The computer and distance learning equipment will be in a secured

community room with dead bolt locks and painted metal doors. An alarm

system will be installed in the room and tied in to the alarm

contractor. The OLSC will ensure that there is either an aide or a

volunteer on duty at all times to provide additional help and assistance

to people.

We are proposing to de-program two 1-bedroom units near the community

space for use as CLC office space and storage, and for a day care

center. One of these units is occupied; the resident will be offered a

move to a vacant 1-bedroom unit at the project\'s expense.

A contract will be bid out to subdivide the facility\'s community room

for the CLC. This contract will include interior wall framing, shelving

in the units to be used for day care and office space, office and

computer furniture, new doors, locks and wiring/cable. All doors will

be wheel chair accessible and a ramp will be added at the two locations

where steps currently exist.

A PIN pad card access system will be installed for residents to access

the computers. This system carries pre-paid capabilities for deducting

fees associated with on-line services. The card access system can also

include building and property security features.

There will be a maintenance contract retainer for the CLC\'s equipment,

and insurance will be purchased to cover the hardware, software and

copier.

7\. Budgeting:

FIRST YEAR\'S START-UP AND OPERATING COSTS:

Computer Hardware

5 - 486 DX Computers @ \$1,500 each \$7,500

5 - multimedia upgrade kits @ \$300. \$1,500

5 - 75 mhz Pentium multimedia computers

@ \$2,000 \$10,000

4 Laser Printers @ \$400 \$ 1,600

Wiring for the network, PIN pad system

and network server. \$10,000

Total for Computer Hardware: \$30,600

Distance Learning Equipment

Distance Learning Equipment for one Camera and a One-Touch System with

10 key pads.

Total Cost: \$50.000

Computer Software

NOTE: All programs will be site licensed and run through the server.

Multimedia-Software for the K-6 Program to be installed on

the network server:

Dinos and Math

Freelance Art Graphics

Reading with Rover

Rocket Science Rangers Total Cost: \$1,500

Multimedia Software for the 7-12 Program to be installed on the

network server:

Chemistry Experiments

Algebra for Aardvarks

Baylor Graphics

Geography by Grant

SAT Studyware Total Cost: \$3,500

Resident Development Software and Time

Management System \$5,000

Word-processing, Spreadsheets and Database

Software \$2,000

Total for Computer Software: \$12,000

Resident Development and Training Costs

Computer Literacy Training and early/late childhood training with 10

residents per class for 8 weeks per class. Number of classes to be

planned based on need.

Student-teacher (valued at) \$18,000/yr

Teaching aide (valued at) \$18,000/yr

Total Cost: \$36,000

Midway through the second six months of operation, we will explore

contracting with trained residents to provide any additional future

training which the residents of the property request.

On-line Service Coordinator \$30,000

Total Coordinator/Resident Development and

Training Costs: \$66,000

Security/retrofit Costs Total: \$25,000

Maintenance/Insurance/Miscellaneous Costs

Maintenance Contract for equipment

(includes start-up training) \$20,000

Yearly Insurance Costs \$ 5,000

Materials, utilities, supplies, trips, copier \$ 7,000

Total Costs \$57,000

TOTAL PROJECT START-UP COSTS: \$215,600

Sources of Funding

1\. Residual Receipts \$50,000

2\. Budgeted Rent Increase (\$11.40 PUPM) \$15,048

\- Maintenance and Insurance (\$15,048)

3\. Downhome State Univ. (valued at) \$18,000

4\. Downtown Community College (valued at) \$18,000

5\. Downtown Cable (valued at) \$ 7,500

6\. Robert Hutchins Educational Foundation \$80,000

\- one-year funding for on OLSC (\$30,000)

\- distance learning equipment (\$50,000)

7\. Increased Owner equity Contribution \$27,052

\- towards Security/retrofit (\$24,000)

\- towards Maintenance/insurance (\$ 3,052)

Total Funding: \$215,600

Minority Business Outreach:

We plan to target the contracts for the computers, wiring and PIN

system, and the necessary retrofitting to minority or women-owned firms.

Advertising will go to the local African-American press and the daily

newspaper. We will also try to contact at least appropriate 10 firms by

telephone, to solicit their bids.

8\. Second-Third Year Operations:

Continuity of adequate funding is essential to the center\'s

operation. The OLSC\'sjob description, supervision and performance

reviews will take into account their skills in involving local

service providers plus attracting in-kind as well as cash

supporters. Outside technical resources will be used as necessary

to provide assistance and to secure ongoing funding from third

parties.

The OLSC and the SSSC will develop a plan to discuss continued

operations with all existing partner agencies on an ongoing basis,

including an additional budget -based rent increase, if

appropriate, and additional funds from the owners.

They will also talk about opportunities of mutual interest with

other agencies and corporations within the city.

A more extensive, and permanent network of volunteers from the

facility and community voluntary organizations may be developed to

supplement or partially replace what are now regular positions

(e.g., aide/student teacher). If the Hutchins Foundation cannot

continue the LCSC grant, we may have to build it into facility

costs, probably through the \$11.40 PUPM rent increase approved this

year, assuming that annual costs will decrease through the building

of a strong voluntary network. A smaller owner contribution may

still be needed in the future.

Donations of materials and additional equipment/software will be

solicited from local firms. It is also possible that user fees may

be established for some of the services available.

Beyond this it is difficult to project what actual operating costs

will be the second year, due to the need to develop volunteer and

other networks. The degree to which these succeed will have a

direct bearing on the direct costs necessary for the second year.

As the action steps posit beginning to develop the second year

budget about 7-I/2 months into the project, by then we should begin

to have a better idea of what costs can be converted to donations/

volunteers, and what costs must continue to be carried by the

program.

It is difficult to state at this time how we will continue ongoing

operations after the second year. We are considering user charges

for all levels of service; we also hope to have a major volunteer

program and at most, one salaried employee. By this time, we

project any software/hardware needs can be donated; building

revenues under mark to market recapitalization will begin some

renovation, and allow fiber-optic cables to go to each unit as part

of the renovation. This would reduce pressure on the CLC and

enable more people to work from home at the project.

NOTE: Ideally, a proposer should show specific costs and state

how they will be covered and which are ongoing ones

versus one-time or every few years.

9\. Assessment/evaluation;

All graduates of programs will receive appropriate certificates or

other normal \"paper\" either developed by the project or by the

third party institution providing the coursework/training. The OLSC

and management staff, as appropriate, will work with local staffs

to make sure that standards and certificates for in-house courses

are appropriate. Otherwise, the existing coursework standard and

certification will be used.

Downhome State University has agreed to do an assessment/

evaluation of the program with a professor i/c of at least two

graduate students. They will develop a simple assessment tool and

matrix which will track participation, document gains and outcomes,

account for income versus exchanges for loss of benefits, overall

costs per participant, allow for resident/personal satisfaction and

input to determine success of the program and to make program

adjustments.

RESIDUAL RECEIPTS BANK ACCOUNT SHEET

AND ANALYSIS OF NEED FOR THE CASH IN THE PROJECT

BUDGET-BASED RENT INCREASE REQUEST FORM

CITIZEN\'S EDUCATION FUND

SAMPLE PLEDGE FORM

(CHILD)

I, , agree to study my homework nightly; avoid drugs, guns and

violence at school and at home; respect my parents, willingly accept the

offered help of teachers, and also be willing to seek out appropriate
help

with schoolwork as necessary.

Signature

Printed name

Witness

Address

(PARENT)

I, , pledge to support good study habits for my children,

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
and\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

and will provide a quiet place for them to study. I agree to ensure they

attend school regularly, exchange telephone numbers with my children\'s

teachers, and discuss their report cards with them and their teachers,
and

get my children assistance with homework if needed. Finally, also agree
to

oppose drugs, guns and violence in both the school and my neighborhood.

Signature

Printed name

Witness

Address

Belle Haven Limited Partnership, Inc.

1554 New Eastern Road

Anycity, ST 01235

Mr. Robert Morris

Manager

Belle Haven Manor

1550 New Eastern Road

AnyCity, ST 01235

Dear Bob:

We are pleased to be able to make a contribution for the first year of

your telecommunication and Learning Center Project for Belle Haven
Manor.

Our belief is that an investment in the lives of the residents of the

facility at this time will produce dividends in terms of the city\'s

workforce, and a cleaner, healthier and better maintained project for
all the

residents.

Thus, conditional on approval of the program by HUD, we are pleased to

present you with a check for \$27,052, and an additional \$50,000 from
residual

receipts (total of \$77,052) for use during the first year of the
project.

If you have any questions, please feel free to call me at 336-9988.

Sincerely,

Sam Driver

Treasurer

DOWNHOME STATE UNIVERSITY

123 126th Street

Education Department

Anycity, ST 01234

Mr. Robert Morris

Manager

Belle Haven Manor

1550 New Eastern Road

Anycity, ST 01235

Dear Mr. Morris:

I appreciate the opportunity to participate in you Computerized Learning

Project. It appears to be an exciting venture, and we are happy for the

opportunity to contribute to its success.

Contingent on final approval of the proposal by HUD, we will make

available a student teacher/graduate student to teach computer literacy

classes (valued at \$18,000) for one year (three semester) for the first

academic year following the approval of the project.

We will also work with the program to develop an evaluation. Dr. Lucy

Van Felt will conduct this study and we will commit the time of at least
two

graduate students to work with her. We are interested developing a
simple

assessment tool and matrix which will track participation, document
gains and

outcomes, account for income versus exchanges for loss of benefits,
overall

costs \'per participant, allow for resident/personal satisfaction and in
put

to determine success of the program and to make program adjustments. We
will

also consider designing performance measures for projects of this type
and

training ideas which could be used elsewhere. The details remain to be

worked out.

If there are any questions, you may direct them to Alice Andrews of my

staff at 321-0555.

Sincerely yours,

Calvin Q. Doctor

Dean

DOWNTOWN COMMUNITY C OLLEGE

654 8th Street

Education Department

Anycity, ST 01255

Mr. Robert Morris

Manager

Belle Haven Manor

1550 New Eastern Road

Anycity, ST 01235

Dear Mr. Morris:

Your Computerized Learning Project appears to be an exciting venture,

and we are happy for the opportunity to contribute to its success.

When you get final approval for the plan from HUD, we will make

available a full time teacher\'s aide to assist with childhood computer

classes (valued at \$18,000) for one year (three semester) for the first

academic year following the approval of the project.

If there are any questions I may be reached at 321-5555.

Sincerely yours,

Lucy B. Stein Director

Robert Hutchins Educational Foundation

1235 Maple Avenue

Anycity, ST 101241

Mr. Robert Morris

Manager

Belle Haven Manor

1550 New Eastern Road

Anycity, ST 01235

Dear Mr. Morris:

Your Computerized Learning Project appears to be an exciting venture.

We believe that this project may contribute significantly to bringing
the

poorer residents of the city into the mainstream of the workforce; we

appreciate the opportunity to be a part of the program.

When HUD gives you final approval, we will make provide up to \$80,000
to

fund the On-line Service Coordinator for at least the first year of the

project, and the distance learning equipment.

If there are any questions please call me at 123-4567.

Sincerely yours,

Randy Parker

Executive Vice President

DOWNHOME CABLE CORPO RATION

12-124th Street

Anycity, ST 01234

Mr. Robert Morris

Manager

Belle Haven Manor

1550 New Eastern Road

Anycity, ST 01235

Dear Mr. Morris:

We appreciate the opportunity to participate in you Computerized

Learning Project. It appears to be an exciting venture, and we are happy
for

the opportunity to contribute to its success in adding to the
community\'s

workforce.

Contingent on final proposal approval by HUD, we will donate 5 486DX

computers and monitors valued at \$7,500, and reserve at least 10 data
jobs to

residents who are high school graduates or have their GED, and complete
a

computer literacy course and data course with the company the first year

following approval of the project. We would also work with facility
staff to

do a study to determine what would be involved, and the costs, to make
cable

available to all units.

If there are any questions, you may direct them to Jane Smith of my

staff at 321-1111.

Sincerely yours,

Linus Van Pelt

Director of Human Resources

FRANK\'S LUMBER AND HARDWA RE CORPORATION

125-Robert Redford Road

Anycity, ST 01445

Mr. Robert Morris

Manager

Belle Haven Manor

1550 New Eastern Road

Anycity, ST 01235

Dear Mr. Morris:

We appreciate the opportunity to participate in you Computerized

Learning Project. It appears to be an exciting venture, and we are happy
for

the opportunity to contribute to its success in adding to the
community\'s

workforce.

Contingent on final approval for the project by HUD, we will make up to

5 jobs available to residents who are high school graduates or have
their

GED, and complete a computer literacy course and data courses with the

company, the first year following approval of the project.

If there are any questions, you may direct them to Roberta Jones of my

staff at 333-0066.

Sincerely yours,

Frank B. Smith

President

Director of Human Resources

LOCAL INTERNET CLUB

P.O. Box 6667

Anycity, ST 01234

Mr. Robert Morris

Manager

Belle Haven Manor

1550 New Eastern Road

Anycity, ST 01235

Dear Mr. Morris:

We appreciate the opportunity to participate in you Computerized

Learning Project. It appears to be an exciting venture, and we are happy
for

the opportunity to contribute to its success and ongoing operation.

Contingent on final approval for the proposal by HUD, we will provide

two free internet accounts to the learning center and try to provide up
to

four volunteers, on an \"as necessary\" basis, with a at least a week\'s
advance

scheduling Notice for at least the first year of the program following

approval.

If there are any questions, you may direct them to John Jordan at 333-

7766\.

Sincerely yours,

Sally Forth President