expertise in financial management, accounting, 
and law. 
‘‘(E) COMPLIANCE WITH TAX-EXEMPT AND 
OTHER REQUIREMENTS.—The board of a pri-
vate, nonprofit organization shall ensure that 
the board operates and conducts activities 
under 
the 
subgrant 
made 
under 
section 
680A(a) in a manner that complies with— 
‘‘(i) the requirements for maintaining 
tax-exempt status under section 501(a) of 
the Internal Revenue Code of 1986 (26 
U.S.C. 501(a)) regarding the governance 
of charities under section 501(c)(3) of the 
Internal Revenue Code of 1986 (26 U.S.C. 
501(c)(3)); and 
‘‘(ii) applicable requirements of State 
law. 
‘‘(2) PUBLIC ORGANIZATIONS.— 
‘‘(A) BOARD.—In order for a public orga-
nization to be considered to be an eligible entity 
for purposes of section 673(1), the organization 
shall administer a program, project, or service 
under the supervision of a tripartite board of 
directors described in subparagraph (C). 
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‘‘(B) SELECTION.—The members of the 
board referred to in subparagraph (A) shall be 
selected by the organization. 
‘‘(C) COMPOSITION OF BOARD.—The board 
shall be composed so as to assure that— 
‘‘(i) not more than 1⁄3 of the members 
of the board are employees of the unit of 
government in which the organization is lo-
cated, including elected officials; 
‘‘(ii)(I) not fewer than 1⁄3 of the mem-
bers are persons chosen in accordance with 
democratic selection procedures adequate 
to assure that the members referred to in 
this clause are representative of low-income 
individuals and families in the service area; 
and 
‘‘(II) each member who is a represent-
ative of low-income individuals and families 
and is also selected to represent a specific 
subarea under subclause (I) resides in such 
area; and 
‘‘(iii) the remainder of the members 
are representatives of business, industry, 
labor, religious, educational, charitable, or 
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other significant private groups in the 
community. 
‘‘(D) EXPERTISE.—The organization shall 
ensure that the members of the board include 
individuals with expertise in financial manage-
ment, accounting, and law. 
‘‘(E) COMPLIANCE WITH STATE REQUIRE-
MENTS AND POLICY.—The board of a public or-
ganization shall ensure that the board operates 
in a manner that complies with State require-
ments for open meetings, financial trans-
parency, and State open records policy. 
‘‘(c) OPERATIONS AND DUTIES OF THE BOARD.— 
The duties of a board described in paragraph (1) or (2) 
of subsection (b) shall include— 
‘‘(1) in the case of a board for a private, non-
profit organization that is an eligible entity, having 
and legal and financial responsibility for admin-
istering overseeing the eligible entity, including mak-
ing proper use of Federal funds; 
‘‘(2) ensuring that the guidance regarding orga-
nizational performance disseminated by the Sec-
retary under section 682(c) (8) is implemented; 
‘‘(3) adopting practices that assure active, inde-
pendent, and informed governance of the eligible en-
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tity, including establishing a limited number of 
terms for officers and adopting a code of ethical con-
duct for members; 
‘‘(4) participating in each comprehensive com-
munity needs assessment, developing and adopting 
as a policy for the corresponding eligible entity a 
community action strategic plan, including provi-
sions for the use of funds under this subtitle, and 
preparing the community action program plan for 
the use of funds under this subtitle; 
‘‘(5) ensuring that the eligible entity manages 
its activities based on a system of performance man-
agement; 
‘‘(6) ensuring compliance by the eligible entity 
with Federal, and applicable State and local, laws, 
including regulations; 
‘‘(7) overseeing financial management, account-
ing, and reporting policies, and complying with laws 
regarding financial statements, including— 
‘‘(A) selecting an auditor; and 
‘‘(B) monitoring corrective action required 
by audit findings and taking other necessary 
actions to enable the eligible entity to comply 
with accounting policies and laws about finan-
cial statements; 
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‘‘(8) reviewing all major financial expenditures 
of the eligible entity, including annually approving 
the eligible entity’s operating budget; 
‘‘(9) reviewing all major policies of the eligible 
entity, including— 
‘‘(A) conducting annual performance re-
views; and 
‘‘(B) conducting assessments of the eligible 
entity’s progress in carrying out programmatic 
and fiscal provisions in the community action 
program plan, and in taking any corrective ac-
tion; 
‘‘(10) adopting personnel policies and proce-
dures, including policies and procedures for hiring, 
annual evaluation, compensation, and termination, 
of the Executive Director of the eligible entity; and 
‘‘(11) adopting and periodically updating writ-
ten conflict of interest policies for members of the 
board. 
‘‘SEC. 682. OFFICE OF COMMUNITY SERVICES. 
‘‘(a) OFFICE.— 
‘‘(1) The Secretary shall establish an Office of 
Community Services in the Department of Health 
and Human Services (referred to in this subtitle as 
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the ‘Department’) to carry out the functions of this 
subtitle. 
‘‘(2) The Office shall be headed by a Director 
(referred to in this subtitle as the ‘Director’). 
‘‘(b) GRANTS, CONTRACTS, 
AND
COOPERATIVE 
AGREEMENTS.—The Secretary, acting through the Direc-
tor, shall carry out the functions of this subtitle through 
grants, contracts, or cooperative agreements. 
‘‘(c) DUTIES, MANAGEMENT, AND INTEGRATION.— 
The Secretary shall— 
‘‘(1) coordinate the activities of all personnel 
and contractors of the Department, concerning mon-
itoring (including inspecting) eligible entities that re-
ceive subgrants under this subtitle and are funded 
or monitored by an office of the Department other 
than the Office of Community Services, in order to 
efficiently organize oversight visits, inspections, and 
audits of such entities by conducting joint oversight 
operations, as practicable; 
‘‘(2) promulgate skill requirements, for Depart-
ment officials with responsibility for monitoring and 
approving State programs under this subtitle, re-
garding the knowledge, skills, and abilities required 
to assess and provide technical assistance regarding 
the operations of private, nonprofit organizations re-
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performance of eligible entities developed jointly by 
the Director and the community services network or-
ganizations. 
‘‘(d) FEDERAL PERFORMANCE BENCHMARKS.—The 
Secretary shall, prior to the beginning of each fiscal year, 
publish Federal performance benchmarks for the Office of 
Community Services for such year, which shall include tar-
gets for— 
‘‘(1) the timeliness of— 
‘‘(A) apportionments and allotments of ap-
propriated funds to States; and 
‘‘(B) the use of funds reserved pursuant to 
section 692(b); 
‘‘(2) the timeliness of approvals or notifications 
concerning State plans and plan revisions described 
in section 680; 
‘‘(3) the timeliness of scheduled monitoring of 
States and implementation of State corrective action 
plans described in section 687; 
‘‘(4) the implementation of the requirements of 
the uniform administrative requirements described 
in section 676(b) by the Department, the States, 
and other grantees; 
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‘‘(5) the implementation of the requirements for 
coordinated audits and monitoring by multiple of-
fices of the Department; 
‘‘(6) the improvement achieved by Federal per-
sonnel in acquiring the knowledge, skills, and abili-
ties described in subsection (c)(2) and needed to ef-
fectively carry out subsection (c)(1); 
‘‘(7) the progress made by the Office of Com-
munity Services in achieving each of the require-
ments of this subtitle; and 
‘‘(8) the timeliness of reports required by this 
subtitle. 
‘‘SEC. 683. TRAINING, TECHNICAL ASSISTANCE, AND RE-
LATED ACTIVITIES. 
‘‘(a) ACTIVITIES.— 
‘‘(1) The Secretary shall, in accordance with 
the plan described in subsection (d)(2)— 
‘‘(A) use amounts reserved under section 
692(c)(2)(A) for training, technical assistance, 
planning, evaluation, and performance measure-
ment, through States and other community 
services network organizations to assist in— 
‘‘(i) development or replication of in-
novative initiatives; 
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‘‘(ii) carrying out professional develop-
ment activities that expand the capacity of 
eligible entities; 
‘‘(iii) carrying out performance meas-
urement, reporting, and data collection ac-
tivities related to programs carried out 
under this subtitle; and 
‘‘(iv) correcting programmatic defi-
ciencies, including such deficiencies of eli-
gible entities; and 
‘‘(B) the Secretary shall distribute the 
amounts reserved under section 692(c)(2)(B) 
directly to States, eligible entities, or other com-
munity services network organizations and their 
partners, including institutions of higher edu-
cation, that carry out activities to achieve the 
goals of the plan described in subsection (b)(2) 
for— 
‘‘(i) professional development for key 
personnel; 
‘‘(ii) activities to improve program 
and financial management practices (in-
cluding practices related to performance 
management information systems); 
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‘‘(iii) activities that train individuals 
and organizations to effectively address the 
needs of low-income families and commu-
nities through place-based strategies for 
coordinated investment and integrated 
service delivery; and 
‘‘(iv) provided that 7.5 percent of 
such reserved amount remain available 
until the end of the second quarter of the 
year for which funds are appropriated for 
grants by the Secretary which shall be 
awarded to States upon approval of an ap-
plication by the State as described in sec-
tion 680(b) for funds to support the one- 
time costs incurred by two or more eligible 
entities for legal, financial and other activi-
ties required to effect a merger of oper-
ations and programs that achieves greater 
efficiency and impact for the use of funds 
appropriated under this subtitle. Any funds 
not designated for such merger incentives 
by the end of the second quarter of the fis-
cal year shall be available for other author-
ized purposes of this subsection. 
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‘‘(b) LIMITATION.—None of the funds allocated 
under subsection (a) may be used for expenses or salaries 
of Federal employees. 
‘‘(c) GRANTS, CONTRACTS, 
AND
COOPERATIVE 
AGREEMENTS.—The activities described in paragraph 
(1)(A) shall be carried out by the Secretary through 
grants, contracts, or cooperative agreements with appro-
priate entities, which shall include all statewide associa-
tions of eligible entities that meet the requirements for 
receipt of Federal funds. 
‘‘(d) TRAINING AND TECHNICAL ASSISTANCE PROC-
ESS.— 
‘‘(1) IN GENERAL.—In order to determine the 
training, technical assistance, and other activities to 
be provided or supported under subsection (a), the 
Secretary, acting through the Director, shall develop 
and carry out the strategic plan described in para-
graph (2), and the activities described in paragraph 
(3). 
‘‘(2) OFFICE OF COMMUNITY SERVICES STRA-
TEGIC TRAINING PLAN.— 
‘‘(A) IN GENERAL.—Not less often than 
every fourth year the Secretary, acting through 
the Director and in consultation with commu-
nity service network organizations, shall de-
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velop, publish, and carry out a strategic plan 
for the use of funds reserved for use under sec-
tion 692(c)(2). 
‘‘(B) CONTENTS.—Such a plan shall de-
scribe— 
‘‘(i) the activities that will be sup-
ported (including their goals), the partner-
ships, if any, required to conduct such ac-
tivities, the role of each partner partici-
pating, the system for delivering the in-
tended results, and the timing of such ac-
tivities; 
‘‘(ii) the manner in which the plan en-
sures that the Secretary complies with 
each requirement of this subtitle related to 
training and technical assistance; 
‘‘(iii) the manner in which the plan 
reflects coordination of activities funded 
under this section with related training 
and technical assistance provided by the 
Department, 
especially 
for 
programs, 
projects, and services other than those 
funded under this subtitle operated by eli-
gible entities; 
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‘‘(iv) the manner in which the results 
of such activities will be measured; 
‘‘(v) quality standards for training 
and trainers to ensure that only effective 
training is funded under this section; and 
‘‘(vi) to the maximum extent feasible, 
how the activities funded under this section 
address— 
‘‘(I) the needs of eligible entities 
and State lead agencies relating to 
skills and techniques to ensure the 
quality (including quality of financial 
management practices) of programs, 
projects, and services supported under 
this subtitle; and 
‘‘(II) other professional develop-
ment needs of the eligible entities re-
lated to carrying out this subtitle. 
‘‘(3) EVALUATION
OF
TRAINING
AND
TECH-
NICAL ASSISTANCE.—The Secretary, acting through 
the Director— 
‘‘(A) shall establish a procedure for evalu-
ating the quality and effectiveness of training 
and technical assistance provided under this 
section related to professional development, 
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local organizational development and manage-
ment including, but not limited to financial 
management, and State government manage-
ment; and 
‘‘(B) shall use the results of the evalua-
tions as significant criteria for selecting recipi-
ents of funds under this section. 
‘‘SEC. 684. STATE MONITORING OF ELIGIBLE ENTITIES. 
‘‘(a) MONITORING BY STATES.—In order to deter-
mine whether eligible entities receiving subgrants under 
this subtitle meet performance benchmarks described in 
section 680(f)(2), administrative standards, financial 
management requirements, and other requirements under 
this subtitle, the State shall conduct the following reviews 
of eligible entities: 
‘‘(1) A full onsite review of each eligible entity 
at least once during each 3-year period. 
‘‘(2) An onsite review of each newly designated 
eligible entity immediately after the completion of 
the first year in which such entity receives funds 
through the community services block grant program 
under this subtitle. 
‘‘(3) Follow-up reviews, including onsite reviews 
scheduled in a corrective action plan (including re-
turn visits), within a calendar quarter for eligible en-
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tities with programs, projects, or services that fail to 
meet the State’s performance criteria, standards, fi-
nancial management requirements, and other signifi-
cant requirements established under this subtitle. 
‘‘(4) Other reviews as appropriate, including re-
views of eligible entities with programs, projects, and 
services that have had other Federal, State, or local 
grants (other than assistance provided under this 
subtitle) terminated for cause. 
‘‘(b) TRAINING AND TECHNICAL ASSISTANCE FOR 
MONITORING.—The State may request training and tech-
nical assistance from the Secretary as needed to comply 
with the requirements of this section. 
‘‘SEC. 685. EVALUATIONS; CORRECTIVE ACTION; WITH-
HOLDING, REDUCTION, OR ELIMINATION OF 
FUNDING. 
‘‘(a) EVALUATIONS
OF
STATES
BY
THE
SEC-
RETARY.— 
‘‘(1) IN GENERAL.—The Secretary shall con-
duct, in not fewer than 1⁄3 of the States in each fis-
cal year, evaluations (including investigations) of 
State compliance with this subtitle, including re-
quirements relating to the use of funds received 
under this subtitle, and especially with respect to 
compliance with the requirements of State plans 
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submitted under section 680(b) and the uniform ad-
ministrative 
requirements 
described 
in 
section 
676(b) as applied to funds received under this sub-
title. 
‘‘(2) REPORT TO STATES.—The Secretary shall 
submit, to each State evaluated, a report con-
taining— 
‘‘(A) the results of such evaluation; and 
‘‘(B)(i) recommendations for improvements 
designed to enhance the benefit and impact of 
the activities carried out with such funds; and 
‘‘(ii) in the event a serious deficiency is 
found regarding a State’s compliance with this 
subtitle, including requirements relating to the 
use of funds received under this subtitle, a pro-
posed corrective action plan that meets the re-
quirements of subsection (b)(2)(B). 
‘‘(3) STATE
RESPONSE.—Not later than 45 
days after receiving a report under paragraph (2)— 
‘‘(A) a State that received recommenda-
tions under paragraph (2)(B)(i) shall submit to 
the Secretary a plan of action in response to 
the recommendations; and 
‘‘(B) a State that received a proposed cor-
rective action plan under paragraph (2)(B)(ii) 
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shall carry out the State’s responsibilities under 
subsection (b)(2). 
‘‘(4) REPORT
TO
CONGRESS.—The Secretary 
shall submit the results of the evaluations annually, 
as part of the report submitted by the Secretary in 
6 accordance with section 689(b)(2). 
‘‘(b) DETERMINATION OF STATE FAILURE TO COM-
PLY.— 
‘‘(1) DUTIES OF THE SECRETARY.—If the Sec-
retary finds, on the basis of an evaluation pursuant 
to subsection (a), that there is a serious deficiency 
regarding a State’s compliance with this subtitle, the 
Secretary shall— 
‘‘(A) inform the State, through the report 
described in subsection (a)(2) and any proposed 
corrective action plan submitted under sub-
section (a)(2)(B), of the deficiency; 
‘‘(B) provide assistance consistent with 
section 685 and subsection (c); 
‘‘(C) with respect to each identified serious 
deficiency, require that the State— 
‘‘(i) correct the deficiency immediately 
if the Secretary finds that the deficiency 
threatens the ability of eligible entities to 
carry out their community action program 
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plans or threatens the integrity of Federal 
funds; or 
‘‘(ii) correct the deficiency not later 
than 90 days after the identification of the 
deficiency if the Secretary finds, in the dis-
cretion of the Secretary, that such a 90 
day period is reasonable, in light of the na-
ture and magnitude of the deficiency; and 
‘‘(D) require that the State carry out— 
‘‘(i) the corrective action plan pre-
pared by the Secretary under subsection 
(a)(2)(B)(ii); or 
‘‘(ii) a State-proposed corrective ac-
tion plan that is approved under paragraph 
(2)(C). 
‘‘(2) CORRECTIVE ACTION PLANS.— 
‘‘(A) IN GENERAL.—A State that is found 
under paragraph (1) to have a serious defi-
ciency shall— 
‘‘(i) agree to implement the corrective 
action plan proposed by the Secretary 
under subsection (a)(2)(B)(ii); or 
‘‘(ii) propose to the Secretary a dif-
ferent corrective action plan, developed by 
the State in a timely manner that the 
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‘‘(II) by notifying the State that 
the proposed plan cannot be approved, 
providing the reasons for the dis-
approval, and proposing an alternative 
corrective action plan. 
‘‘(ii) STATE RESPONSE.— 
‘‘(I) 
IN
GENERAL.—A 
State 
whose corrective action plan has not 
been approved under clause (i) shall 
respond by agreeing to implement the 
alternative corrective action plan, or 
by submitting a different proposed 
corrective action plan not later than 
15 days after receiving notification 
from the Secretary under clause (i). 
‘‘(II) INADEQUATE
DIFFERENT 
PROPOSED
PLAN.—If the Secretary 
determines the different proposed plan 
to be inadequate, the Secretary shall 
use the procedures to withhold fund-
ing described in paragraph (3)(A) 
until the State and the Secretary 
agree on, and the State implements a 
satisfactory corrective action plan. If 
the Secretary makes that determina-
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tion, the Director, pursuant to para-
graph (3)(C), shall ensure that the af-
fected funds are obligated and made 
available to eligible entities on the 
same schedule as the State would 
have been required to follow if the 
Secretary had not made the deter-
mination. 
‘‘(3) ENFORCEMENT.— 
‘‘(A) WITHHOLDING OF FUNDING.—If the 
Secretary determines that a State fails to meet 
the requirements of this subsection, including a 
failure to comply with the terms of a corrective 
action plan described in subsection (a)(2)(B) or 
approved under paragraph (2) or a failure to 
correct a serious deficiency in accordance with 
the timing requirements of paragraph (1)(C), 
the Secretary may initiate proceedings to with-
hold all or a portion of the amount of the fund-
ing described in section 680A(b)(2)(A), includ-
ing prohibiting the State from using other 
funds awarded under this subtitle to carry out 
the activities described in such section, until the 
State complies with all requirements of this 
subsection. 
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‘‘(B) REDUCTION
OR
ELIMINATION
OF 
FUNDING.—If the Secretary determines, on the 
basis of a final decision in a review conducted 
under this section that a State fails to meet the 
requirements of this subsection, the Secretary 
may, after providing adequate notice and an op-
portunity for a hearing, initiate proceedings to 
reduce or eliminate the amount of funding de-
scribed in section 680A(b)(2)(A), including pro-
hibiting the State from using other funds 
awarded under this subtitle to carry out the ac-
tivities described in such section, unless the 
State corrects the failure to meet the require-
ments. 
‘‘(C) USE OF FUNDS.— 
‘‘(i) If the Secretary delays, reduces, 
or eliminates funding to a State under sub-
paragraph (B), the Secretary shall award 
the amount of the funding to eligible enti-
ties and/or community services network or-
ganizations in the State, to carry out the 
activities described in section 680A(b). 
‘‘(ii) In the event a State elects not to 
receive funding under this subtitle, includ-
ing a refusal to submit a plan meeting the 
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Secretary″s requirements, the Secretary 
shall provide funding directly by grant or 
cooperative agreement to eligible entities in 
good standing at the end of the last fiscal 
year for which the state received an alloca-
tion under this subtitle. 
‘‘(4) TRAINING AND TECHNICAL ASSISTANCE.— 
The Secretary shall provide training and technical 
assistance to States with respect to the development 
or implementation of the States’ corrective action 
plans. 
‘‘(c) DETERMINATION OF LOCAL AGENCY FAILURE 
TO COMPLY.— 
‘‘(1) CORRECTIVE
ACTION
BY
LOCAL
AGEN-
CIES.—If the State determines, on the basis of a re-
view pursuant to section 684 or section 686, that 
there is a serious deficiency regarding an eligible en-
tity’s compliance with this subtitle, the State shall— 
‘‘(A) inform the entity of the serious defi-
ciencies that shall be corrected and provide 
technical assistance for the corrective action; 
‘‘(B) with respect to each identified serious 
deficiency, require that the eligible entity— 
‘‘(i) correct the deficiency immediately 
if the State finds that the deficiency 
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threatens the ability of the eligible entity 
to carry out the entity’s community action 
program plan or threatens the integrity of 
Federal funds; 
‘‘(ii) correct the deficiency not later 
than 90 days after the identification of the 
deficiency if the State finds that such a 
90-day period is reasonable, in light of the 
nature and magnitude of the deficiency; or 
‘‘(iii) in the discretion of the State 
(taking into consideration the seriousness 
of the deficiency and the time reasonably 
required to correct the deficiency), comply 
with the requirements of paragraph (2) 
concerning a corrective action plan; 
‘‘(C) initiate proceedings to withhold, re-
duce, or eliminate the funding described in sec-
tion 680A(a) including, in the case of elimi-
nation of funding, terminating the designation 
under this subtitle of the eligible entity unless 
the entity corrects the deficiency as required; 
and 
‘‘(D) ensure that the State’s definitions, 
procedures, and requirements under this section 
regarding serious deficiencies of eligible entities 
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are in accordance with policies and regulations 
promulgated by the Secretary to implement the 
uniform administrative requirements described 
in section 676(b) with respect to this subtitle. 
‘‘(2) LOCAL CORRECTIVE ACTION PLANS.— 
‘‘(A) IN GENERAL.—An eligible entity that 
is found to have a serious deficiency under 
paragraph (1) shall develop, in a timely man-
ner, a corrective action plan that shall be sub-
ject to the approval of the State, and that shall 
specify— 
‘‘(i) the deficiencies to be corrected; 
‘‘(ii) the actions to be taken to correct 
such deficiencies; and 
‘‘(iii) the timetable for accomplish-
ment of the corrective actions specified. 
‘‘(B) APPROVAL PROCESS.— 
‘‘(i) IN GENERAL.—Not later than 15 
days after the State receives an entity’s 
proposed corrective action plan in accord-
ance with subparagraph (A), the State 
shall review the proposed plan and act 
‘‘(I) by approving the proposed 
plan; or 
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‘‘(II) by notifying the entity that 
the proposed plan cannot be approved, 
providing the reasons for the dis-
approval, and proposing an alternative 
corrective action plan. 
‘‘(ii) ENTITY’S RESPONSE.—An entity 
whose corrective action plan has not been 
approved under clause (i) shall respond by 
agreeing to implement the alternative cor-
rective action plan, or by submitting a dif-
ferent proposed corrective action plan, not 
later than 10 working days after receiving 
notification from the State under clause 
(i). 
‘‘(iii) INADEQUATE DIFFERENT PRO-
POSED PLAN.—If the State determines the 
different proposed plan to be inadequate, 
the State may withhold funding as de-
scribed in paragraph (3) until the entity 
implements a satisfactory corrective action 
plan. 
‘‘(3) FINAL
DECISION.—If the State deter-
mines, on the basis of a final decision in a review 
conducted under section 684(a)(3), that an eligible 
entity fails to comply with the terms of a corrective 
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action plan under paragraph (2) relating to correc-
tion of a serious deficiency for the eligible entity, the 
State may, after providing adequate notice and an 
opportunity for a hearing, initiate proceedings to 
withhold, reduce, or eliminate the funding provided 
under section 680A(a) to the eligible entity (includ-
ing, in the case of elimination of funding, termi-
nating the designation under this subtitle of the eli-
gible entity) unless the entity corrects the serious 
deficiency. 
‘‘(4) TRAINING AND TECHNICAL ASSISTANCE.— 
The State shall provide training and technical assist-
ance to eligible entities with respect to the develop-
ment or implementation of the entities’ corrective ac-
tion plans. 
‘‘(5) SPECIAL
CIRCUMSTANCE.—In the event 
the State has credible evidence that funds have been 
expended with fraudulent or other criminal intent, 
funding may be suspended while the procedures to 
review such evidence are conducted by appropriate 
investigative entities or until the State determines 
funds will not be at risk, whichever is earlier. 
‘‘(d) REVIEW.— 
‘‘(1) IN
GENERAL.—A State’s determination 
under subsection (c) to terminate such designation 
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or reduce such funding of an eligible entity may be 
reviewed by the Secretary. The Secretary shall, upon 
request, by a community services network organiza-
tion, review such a determination. The review shall 
be completed not later than 60 days after the Sec-
retary receives from the State all necessary docu-
mentation relating to the determination except as 
provided in paragraph (2). 
‘‘(2) FAILURE TO PROVIDE DOCUMENTATION.— 
If the State fails to provide such documentation 
within 30 days after the Secretary’s request, the 
State may not expend funds for the purposes de-
scribed in section 680A(b)(2) until the State pro-
vides such documentation. The Secretary shall re-
spond to the State with a decision not later than 30 
days after receiving the documentation. 
‘‘(e) DIRECT ASSISTANCE.—Whenever the Secretary 
determines that a State has violated the assurances de-
scribed in paragraphs (8), (11), or (12) of section 680(b) 
and has withheld, reduced, or eliminated the funding pro-
vided under section 680A(a) to an eligible entity prior to 
the completion of the State proceedings described in sub-
section (c)(3) and the Secretary’s review as required in 
subsection (d), the Secretary shall provide financial assist-
ance under this subtitle to the eligible entity until the vio-
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lation is corrected by the State. In such a case, the grant 
for the State under section 677 or 678 for the earliest 
appropriate fiscal year shall be reduced by an amount 
equal to the financial assistance provided under this sub-
section to such eligible entity. 
‘‘SEC. 686. STATE AND LOCAL FISCAL CONTROLS, AUDITS, 
AND WITHHOLDING. 
‘‘(a) FISCAL CONTROLS, PROCEDURES, AUDITS, AND 
INSPECTIONS.— 
‘‘(1) IN GENERAL.—A State that receives funds 
under this subtitle shall— 
‘‘(A) establish fiscal control and fund ac-
counting procedures necessary to assure the 
proper disbursal of and accounting for Federal 
funds paid to the State under this subtitle, in-
cluding procedures for monitoring the funds 
provided under this subtitle; 
‘‘(B) subject to paragraphs (2) and (3), 
prepare, not less than once each year, an audit 
of the expenditures of the State of amounts re-
ceived under this subtitle; and 
‘‘(C) make appropriate books, documents, 
papers, and records available to the Secretary 
and the Comptroller General of the United 
States, or any of their duly authorized rep-
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resentatives, for examination, copying, or me-
chanical reproduction on or off the premises of 
the appropriate entity upon a reasonable re-
quest for the items. 
‘‘(2) INDEPENDENT ENTITY.—Subject to para-
graph (3), each audit required by paragraph (1)(B) 
shall be conducted by an entity independent of any 
agency administering activities or services under this 
subtitle and shall be conducted in accordance with 
generally accepted accounting principles. 
‘‘(3) SINGLE AUDIT REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Any audit under this 
subsection shall be conducted in the manner 
and to the extent provided in chapter 75 of title 
31, United States Code (commonly known as 
the ‘Single Audit Act Amendments of 1986’) 
except in the event a serious financial deficiency 
is identified. 
‘‘(B) SERIOUS FINANCIAL DEFICIENCY.— 
In the event that such a deficiency is identified, 
the Secretary shall order— 
‘‘(i) an audit conducted as described 
in subparagraph (A); or 
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‘‘(ii) an audit of each of the accounts 
involved, in accordance with paragraphs 
(2) and (4). 
‘‘(4) SUBMISSION OF COPIES.—Not later than 
30 days after the completion of each such audit in 
a State, the chief executive officer of the State shall 
submit copies of such audit, at no charge, to any eli-
gible entity that was the subject of the audit, to the 
legislature of the State, and to the Secretary. 
‘‘(5) REPAYMENTS.—If the Secretary, after re-
view of the audit, finds that a State has not ex-
pended an amount of funds in accordance with this 
subtitle, the State shall immediately use an amount 
of State funds equal to the amount of improperly ex-
pended funds for the original purposes for which the 
grant funds were intended. 
‘‘(6) RESPONSE
TO
COMPLAINTS.—The Sec-
retary shall respond in an expeditious and speedy 
manner to complaints of a substantial or serious na-
ture that a State has failed to use grant funds re-
ceived under section 677 or 678 in accordance with 
the provisions of this subtitle. 
‘‘(7) INVESTIGATIONS.—Whenever the Sec-
retary determines that there is a pattern of com-
plaints regarding failures described in paragraph (6) 
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or a complaint of a serious deficiency concerning any 
State, the Secretary shall conduct an investigation of 
the use of the funds received under this subtitle by 
such State in order to ensure compliance with the 
provisions of this subtitle. 
‘‘(b) STATE FUNDS.— 
‘‘(1) CORRECTIVE ACTION PLAN.—In the event 
the Secretary withholds, reduces, or eliminates fund-
ing pursuant to section 685(b)(3)(A), the Secretary 
shall subsequently make the withheld, reduced, or 
eliminated funding available to the State not later 
than 90 days after the date for correction of the se-
rious deficiency specified in such plan if the State 
complies with a corrective action plan described in 
section 685(b)(2)(A). 
‘‘(2) APPLICATION.—For purposes of para-
graph (1), failures described in paragraph (1)(a)(6) 
shall be considered to be serious deficiencies. 
‘‘SEC. 687. ACCOUNTABILITY AND REPORTING REQUIRE-
MENTS. 
‘‘(a) STATE ACCOUNTABILITY AND REPORTING RE-
QUIREMENTS.— 
‘‘(1) PERFORMANCE MEASUREMENT.— 
‘‘(A) IN GENERAL.—By October 1, 2014, 
each State that receives funds under this sub-
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title shall participate, and shall ensure that all 
eligible entities in the State participate, in a 
performance measurement system that the Sec-
retary is satisfied meets the requirements of 
paragraphs (11) and (12) of section 680(b). 
‘‘(B) LOCAL ORGANIZATIONS.—The State 
may elect to have local organizations that are 
subgrantees of the eligible entities under this 
subtitle participate in the performance measure-
ment system. If the State makes that election, 
references in this section to eligible entities 
shall be considered to include the local organi-
zations. 
‘‘(C) ELIGIBLE ENTITY REPORTS.—Eligi-
ble entities shall provide the results measured 
by their performance measurement system, re-
ports on the achievement of their annual bench-
marks and such other reports as the State may 
require. 
‘‘(2) ANNUAL REPORT.—Each State receiving 
funds under this subtitle shall annually prepare, and 
submit to the Secretary by March 31 of each year, 
a report on the performance of the State and eligible 
entities in the State, including achievement with re-
spect to the State lead agency performance bench-
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marks and the local performance benchmarks re-
spectively and to other performance measurements 
that were used by community service network orga-
nizations in the State for the prior year. Each State 
shall also include in the report— 
‘‘(A) an accounting of the expenditure of 
funds received by the State through the com-
munity services block grant program, including 
an accounting of funds spent on administrative 
or indirect costs by the State and the eligible 
entities and funds spent by the eligible entities 
on local programs, projects, and services; 
‘‘(B) information on the number and char-
acteristics of clients served under this subtitle 
in the State, based on data collected from the 
eligible entities; 
‘‘(C) a summary describing the training 
and technical assistance offered by the State 
under 
section 
680A(b)(1)(B) 
and 
680A(b)(1)(D) during the year covered by the 
report and the State″s progress toward meeting 
its training and technical assistance plan goals; 
‘‘(D) the State″s management performance 
benchmark results; 
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‘‘(E) information on the total budget and 
activities of the eligible entities receiving sub-
grants from the State under this subtitle, in-
cluding local and private resources available for 
a purpose described in section 672; 
‘‘(F) a report on the Community Action 
Innovations Program in the State; and 
‘‘(G) a report on the manner in which the 
State and eligible entities and other recipients 
of funds under this subtitle have implemented 
results oriented management practices based on 
their performance measurement systems. 
‘‘(b) REPORTING REQUIREMENTS.— 
‘‘(1) CONTENTS.—Not later than September 30 
of each fiscal year, the Secretary shall, directly or by 
grant or contract, prepare a report containing— 
‘‘(A) the information included in the State 
annual reports under subsection (a)(2) for the 
preceding fiscal year; 
‘‘(B) a report on the performance of the 
Department in the preceding fiscal year regard-
ing the performance benchmarks established 
under section 682(d); 
‘‘(C) a description of the training and tech-
nical assistance activities funded by the Sec-
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retary under section 683 and the results of 
those activities, including a report on progress 
toward achieving the goals of the Secretary″s 
strategic plan for training and technical assist-
ance described in section 683(d)(2); and 
‘‘(D) any additional information that the 
Secretary considers to be appropriate to carry 
out this subtitle. 
‘‘(2) SUBMISSION.—The Secretary shall submit 
to the Committee on Education and the Workforce 
of the House of Representatives and to the Com-
mittee on Health, Education, Labor, and Pensions 
of the Senate the report described in paragraph (1) 
and any recommendations the Secretary may have 
with respect to such report. 
‘‘(3) ELECTRONIC DATA SYSTEM FOR REPORTS 
TO
STATES
AND
ELIGIBLE
ENTITIES.—The Sec-
retary shall provide technical assistance, including 
support for development and maintenance of an elec-
tronic data system for the reports under this section, 
to the States and eligible entities to enhance the 
quality and timeliness of reports submitted under 
this subtitle. The system shall be coordinated and 
consistent with the data systems established for 
other programs of the Department that are managed 
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by eligible entities, including all programs of the Ad-
ministration for Children and Families or successor 
administrative units in which the office is located. 
‘‘SEC. 688. LIMITATIONS ON USE OF FUNDS. 
‘‘(a) CONSTRUCTION OF FACILITIES.— 
‘‘(1) LIMITATIONS.—Except as provided in 
paragraph (2) and in section 680(b)(1)(C), grants or 
subgrants made under this subtitle may not be used 
by the State, or by any other person with which the 
State makes arrangements to carry out a purpose 
described in section 672, for the purchase or im-
provement of any building or other facility. 
‘‘(2) WAIVER.—The Secretary may waive the 
limitation contained in paragraph (1) upon a State 
request for such a waiver if the Secretary finds that 
the request describes extraordinary circumstances to 
justify the purchase or improvement of land, or the 
purchase, construction or permanent improvement of 
any building or other facilities, and that permitting 
the waiver will contribute to the ability of the State 
and eligible entities to carry out a purpose described 
in section 672 at substantially reduced costs. 
‘‘(b) POLITICAL ACTIVITIES.— 
‘‘(1) TREATMENT AS A STATE OR LOCAL AGEN-
CY.—For purposes of chapter 15 of title 5, United 
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States Code, any entity that assumes responsibility 
for planning, developing, and coordinating activities 
under this subtitle and receives assistance under this 
subtitle shall be deemed to be a State or local agen-
cy. For purposes of paragraphs (1) and (2) of sec-
tion 1502(a) of such title, any entity receiving as-
sistance under this subtitle shall be deemed to be a 
State or local agency. 
‘‘(2) PROHIBITIONS.—An entity carrying out a 
program, project, or service assisted under this sub-
title, and any individual employed by, or assigned to 
or in, such a program, project, or service (during the 
hours in which the individual is working on behalf 
of the program, project, or service) shall not engage 
in— 
‘‘(A) any partisan or nonpartisan political 
activity or any political activity associated with 
a candidate, or contending faction or group, in 
an election for public or party office; or 
‘‘(B) any activity to provide voters or pro-
spective voters with transportation to the polls 
or similar assistance in connection with any 
such election. 
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‘‘(3) REGISTRATION.—None of the funds appro-
priated to carry out this subtitle may be used to con-
duct voter registration activities. 
‘‘(c) NONDISCRIMINATION.— 
‘‘(1) IN
GENERAL.—No person shall, on the 
basis of race, color, national origin, or sex be ex-
cluded from participation in, be denied the benefits 
of, or be subjected to discrimination under, any pro-
gram, project, or service funded in whole or in part 
with funds made available under this subtitle. Any 
prohibition against discrimination on the basis of 
age under the Age Discrimination Act of 1975 9 (42 
U.S.C. 6101 et seq.) or with respect to an otherwise 
qualified individual with a disability as provided in 
section 504 of the Rehabilitation Act of 1973 (29 12 
U.S.C. 794), or title II of the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 12131 et seq.) shall 
also apply to any such program, project, or service. 
‘‘(2) ACTION
OF
SECRETARY.—Whenever the 
Secretary determines that a State that has received 
a payment under this subtitle has failed to comply 
with paragraph (1) or an applicable regulation, the 
Secretary shall notify the chief executive officer of 
the State and shall request that the officer secure 
compliance. If within a reasonable period of time, 
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not to exceed 60 days, the chief executive officer 
fails or refuses to secure compliance, the Secretary 
is authorized to— 
‘‘(A) refer the matter to the Attorney Gen-
eral with a recommendation that an appropriate 
civil action be instituted; 
‘‘(B) exercise the powers and functions 
provided by title VI of the Civil Rights Act of 
1964 (42 U.S.C. 2000d et seq.), the Age Dis-
crimination Act of 1975 (42 U.S.C. 6101 et 
seq.), section 504 of the Rehabilitation Act of 
1973 (29 U.S.C. 794), or title II of the Ameri-
cans with Disabilities Act of 1990 (42 U.S.C. 
11 12131 et seq.), as may be applicable; or 
‘‘(C) take such other action as may be pro-
vided by law. 
‘‘(3) ACTION OF ATTORNEY GENERAL.—When a 
matter is referred to the Attorney General pursuant 
to paragraph (2), or whenever the Attorney General 
has reason to believe that the State is engaged in a 
pattern or practice of discrimination in violation of 
the provisions of this subsection, the Attorney Gen-
eral may bring a civil action in any appropriate 
United States district court for such relief as may 
be appropriate, including injunctive relief. 
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‘‘SEC. 689. DRUG AND CHILD SUPPORT SERVICES AND RE-
FERRALS. 
‘‘(a) DRUG TESTING AND REHABILITATION.— 
‘‘(1) IN
GENERAL.—Nothing in this subtitle 
shall be construed to prohibit a State from testing 
participants in programs, projects, or services car-
ried out or provided under this subtitle for controlled 
substances. A State that conducts such testing shall 
inform the participants who test positive for any of 
such substances about the availability of treatment 
or rehabilitation services and refer such participants 
for appropriate treatment or rehabilitation services. 
‘‘(2) NON-ADMINISTRATIVE
EXPENSES.—Any 
funds provided under this subtitle expended for such 
testing shall not be considered to be expended for 
administrative expenses and shall not be subject to 
the limitation specified in section 680A(b)(2). 
‘‘(3) DEFINITION.—In this subsection, the term 
‘controlled substance’ has the meaning given the 
term in section 102 of the Controlled Substances 
Act (21 U.S.C. 802). 
‘‘(b) CHILD SUPPORT SERVICES AND REFERRALS.— 
During each fiscal year for which an eligible entity receives 
a subgrant under section 680A(a), such entity shall— 
‘‘(1) inform custodial parents in single-parent 
families that participate in programs, projects, or 
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services carried out or provided under this subtitle 
about the availability of child support services; and 
‘‘(2) refer eligible parents to the child support 
offices of State and local governments. 
‘‘SEC. 690. OPERATIONAL RULES. 
‘‘(a) RELIGIOUS ORGANIZATIONS INCLUDED AS NON-
GOVERNMENTAL PROVIDERS.—For any program carried 
out by the Federal Government, or by a State or local 
government under this subtitle, the government shall con-
sider, on the same basis as other nongovernmental organi-
zations, religious organizations to provide the assistance 
under the program, so long as the program is implemented 
in a manner consistent with the Establishment Clause of 
the first amendment to the Constitution. Neither the Fed-
eral Government nor a State or local government receiving 
funds under this subtitle shall discriminate against an or-
ganization that provides assistance under, or applies to 
provide assistance under, this subtitle, on the basis that 
the organization has a religious character. 
‘‘(b) 
RELIGIOUS
CHARACTER
AND
INDEPEND-
ENCE.— 
‘‘(1) IN
GENERAL.—A religious organization 
that provides assistance under a program described 
in subsection (a) shall retain its religious character 
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and control over the definition, development, prac-
tice, and expression of its religious beliefs. 
‘‘(2) ADDITIONAL
SAFEGUARDS.—Neither the 
Federal Government nor a State or local government 
shall require a religious organization— 
‘‘(A) to alter its form of internal govern-
ance, except (for purposes of administration of 
the community services block grant program) as 
provided in section 681C; or 
‘‘(B) to remove religious art, icons, scrip-
ture, or other symbols; in order to be eligible to 
provide assistance under a program described in 
subsection (a). 
‘‘(3) EMPLOYMENT
PRACTICES.—A religious 
organization″s exemption provided under section 702 
of the Civil Rights Act of 1964 (42 U.S.C. 2000e– 
1) regarding employment practices shall not be af-
fected by its participation in, or receipt of funds 
from, programs described in subsection (a). 
‘‘(c) 
NONDISCRIMINATION
AGAINST
BENE-
FICIARIES.—A religious organization providing assistance 
under any program described in subsection (a) of this sec-
tion shall not, in providing such assistance, discriminate 
against a program beneficiary or prospective program ben-
eficiary on the basis of religion or religious belief. 
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‘‘(d) LIMITATIONS ON USE OF FUNDS FOR CERTAIN 
PURPOSES.—No funds provided directly to a religious or-
ganization to provide assistance under any program de-
scribed in subsection (a) shall be expended for sectarian 
worship, instruction, or proselytization. 
‘‘(e) FISCAL ACCOUNTABILITY.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization providing as-
sistance under any program described in subsection 
(a) shall be subject to the same regulations as other 
nongovernmental organizations to account in accord 
with generally accepted accounting principles for the 
use of such funds provided under such program. 
‘‘(2) LIMITED AUDIT.—Such organization shall 
segregate government funds provided under such 
program into a separate account. Only the govern-
ment funds shall be subject to audit by the govern-
ment. 
‘‘(f) TREATMENT
OF
ELIGIBLE
ENTITIES
AND 
OTHER INTERMEDIATE ORGANIZATIONS.—If an eligible 
entity or other organization (referred to in this subsection 
as an ‘intermediate organization’), acting under a con-
tract, or grant or other agreement, with the Federal Gov-
ernment or a State or local government, is given the au-
thority under the contract or agreement to select non-
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governmental organizations to provide assistance under 
the programs described in subsection (a), the intermediate 
organization shall have the same duties under this section 
as the government. 
‘‘SEC. 691. REGULATIONS AND TRANSITION PERIOD. 
‘‘(a) TRANSITION PERIOD.—The Secretary shall ex-
peditiously announce a schedule for adopting any changes 
in regulation, procedure and reporting required by this 
subtitle and for the availability of Federal training for 
States and eligible entities, especially with respect to 
adopting Uniform Practices for Administration, which pe-
riod may not extend further than 3 months prior to the 
start of the second fiscal year after the effective date of 
this subtitle and may include final adoption of new re-
quirements prior to the final date of the period as deter-
mined by the Secretary to be appropriate. 
‘‘(b) REGULATIONS.—The Secretary shall promul-
gate regulations implementing this subtitle, by administra-
tive hearing open to the public including regulations re-
garding— 
‘‘(1) State and community action programs and 
plans including the form and information required 
for State and community action programs and plans; 
‘‘(2) State monitoring of eligible entities; and 
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‘‘(3) reports to the Secretary described in sec-
tion 687. 
‘‘(c) GUIDANCE.—The Secretary shall promulgate 
guidance regarding State and community performance 
measurement systems including— 
‘‘(1) 
STATE
MANAGEMENT
PERFORMANCE 
BENCHMARKS.—The Secretary, in consultation with 
community service network organizations, shall pro-
mulgate common State management performance in-
dicators which shall include indicators concerning— 
‘‘(A) timely obligation and distribution and 
effective oversight of Federal funds; 
‘‘(B) compliance with the requirements for 
minimum skills of State personnel and compli-
ance with the uniform administrative require-
ments described in section 676(b); 
‘‘(C) effective management of the activities 
funded under this subtitle; and 
‘‘(D) the results of activities funded by the 
State under this subsection 680A(b). 
‘‘(2) COMPREHENSIVE ANALYSIS OF POVERTY 
CONDITIONS.—The Secretary shall provide guidance 
(including models) for comprehensive community 
needs 
assessments 
described 
in 
subsection 
680(a)(2)(C) that are used in conjunction with com-
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munity action strategic plans. The guidance shall in-
clude methods for preparing an analysis of all pov-
erty conditions affecting the community and of local 
and regional assets for alleviating such conditions; 
and 
‘‘(3) such other guidance as may be required by 
this subtitle. 
‘‘SEC. 692. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out sections 671 through 691 of this 
subtitle $850,000,000 for each of fiscal years 2014 
through 2018 and such sums as may be necessary for fis-
cal years 2019 through 2023. 
‘‘(b) There are authorized to be appropriated such 
sums as may be necessary to carry out section 693 for 
fiscal years 2014 through 2023. 
‘‘(c) RESERVATIONS BY THE SECRETARY.—Of the 
amounts appropriated under subsection (a) for each fiscal 
year, the Secretary shall reserve— 
‘‘(1) 1⁄2 of 1 percent for carrying out section 
677 (relating to grants to territories); and 
‘‘(2) 2 percent for activities authorized in sec-
tion 683, of which— 
‘‘(A) not less than 1⁄2 of the amount re-
served by the Secretary under this paragraph 
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shall be awarded through grants, contracts, or 
cooperative agreements under section 683(c), to 
eligible entities, community action agencies, and 
State and regional community service network 
organizations, for the purpose of carrying out 
activities described in section 683(a)(1)(A); and 
‘‘(B) the remainder of the amount reserved 
under this paragraph shall be distributed under 
section 683(a)(1)(B)(c) to States, eligible enti-
ties, other community services network organi-
zations, or other entities, for the purpose of 
carrying out activities described in section 
683(a)(1)(B). 
‘‘SEC. 693. DISCRETIONARY COMMUNITY PROGRAMS. 
‘‘(a) GRANTS, CONTRACTS, ARRANGEMENTS, LOANS, 
AND GUARANTEES.— 
‘‘(1) IN GENERAL.—The Secretary shall, from 
funds appropriated under section 692(b), make 
grants, loans, or guarantees to States and public 
agencies and private, nonprofit organizations, or 
enter into contracts or jointly financed cooperative 
arrangements with States and public agencies and 
private, nonprofit organizations (and for-profit orga-
nizations, to the extent specified in paragraph 
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(2)(E)) for each of the objectives described in para-
graphs (2) through (4). 
‘‘(2) COMMUNITY ECONOMIC DEVELOP-
MENT.— 
‘‘(A) ECONOMIC
DEVELOPMENT
ACTIVI-
TIES.—The Secretary shall make grants de-
scribed in paragraph (1) on a competitive basis 
to private, nonprofit organizations that are 
community development corporations to provide 
technical and financial assistance for economic 
development activities designed to address the 
economic needs of low-income individuals and 
families by creating employment and business 
development opportunities. 
‘‘(B) 
CONSULTATION.—The 
Secretary 
shall exercise the authority provided under sub-
paragraph (A) after consultation with other rel-
evant Federal officials. 
‘‘(C) GOVERNING BOARDS.—For a commu-
nity development corporation to receive funds to 
carry out this paragraph, the corporation shall 
be governed by a board that shall consist of 
residents of the community and business and 
civic leaders and shall have as a principal pur-
pose planning, developing, or managing low-in-
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come 
housing 
or 
community 
development 
projects. 
‘‘(D) 
GEOGRAPHIC
DISTRIBUTION.—In 
making grants to carry out this paragraph, the 
Secretary shall take into consideration the geo-
graphic distribution of funding among States 
and the relative proportion of funding among 
rural and urban areas. 
‘‘(E) RESERVATION.—Of the amounts 
made available to carry out this paragraph, the 
Secretary may reserve not more than 1 percent 
for each fiscal year to make grants to private, 
nonprofit organizations or to enter into con-
tracts with private, nonprofit or for-profit orga-
nizations to provide technical assistance to aid 
community development corporations in devel-
oping or implementing activities funded to carry 
out this paragraph and to evaluate activities 
funded to carry out this paragraph. 
‘‘(3) RURAL
COMMUNITY
DEVELOPMENT
AC-
TIVITIES.—The Secretary shall provide the assist-
ance described in paragraph (1) for rural community 
development activities, which shall include pro-
viding— 
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‘‘(A) grants to private, nonprofit corpora-
tions to enable the corporations to provide as-
sistance concerning home repair to rural low-in-
come families and concerning planning and de-
veloping low-income rural rental housing units; 
and 
‘‘(B) grants to multistate, regional, pri-
vate, nonprofit organizations to enable the orga-
nizations to provide training and technical as-
sistance to small, rural communities concerning 
meeting their community facility needs. 
‘‘(4) 
NEIGHBORHOOD
INNOVATION 
PROJECTS.—The Secretary shall provide the assist-
ance described in paragraph (1) for neighborhood in-
novation projects, which shall include providing 
grants to neighborhood-based private, nonprofit or-
ganizations to test or assist in the development of 
new approaches or methods that will aid in over-
coming special problems identified by communities 
or neighborhoods or otherwise assist in furthering 
the purposes of this subtitle, and which may include 
providing assistance for projects that are designed to 
serve low-income individuals and families who are 
not being effectively served by other programs. 
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‘‘(b) EVALUATION.—The Secretary shall require all 
activities receiving assistance under this section to be eval-
uated for their effectiveness. Funding for such evaluations 
shall be provided as a stated percentage of the assistance 
or through a separate grant awarded by the Secretary spe-
cifically for the purpose of evaluation of a particular activ-
ity or group of activities. 
‘‘(c) ANNUAL REPORT.—The Secretary shall compile 
an annual report containing a summary of the evaluations 
required in subsection (b) and a listing of all activities as-
sisted under this section. The Secretary shall annually 
submit the report to the Chairperson of the Committee 
on Education and the Workforce of the House of Rep-
resentatives and the Chairperson of the Committee on 
Health, Education, Labor and Pensions of the Senate.’’. 
Æ 
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