‘‘(f) APPLICATION FOR COMMUNITY ACTION PRO-
GRAM AND COMMUNITY ACTION PROGRAM PLAN.—Begin-
ning with the first fiscal year following the transition year, 
to be eligible to receive a subgrant under section 680A(a), 
each eligible entity shall prepare and submit to the State 
for approval an application containing a community action 
program plan or plans covering a period of not more than 
two fiscal years. Such application shall be submitted no 
later than 90 days before the date for submission of the 
State application to the Secretary. The application shall 
contain information on the intended implementation of the 
eligible entity’s activities, including demonstrating— 
‘‘(1) how the program— 
‘‘(A) meets needs identified in the most re-
cent comprehensive community needs assess-
ment, and is consistent with the entity’s com-
munity action strategic plan for that period; 
and 
‘‘(B) achieves the purposes of this subtitle 
through programs, projects, and services, which 
may include the activities described in section 
683. 
‘‘(2) ELIGIBLE
ENTITY
PERFORMANCE
RE-
QUIREMENTS
AND
BENCHMARKS.—Not later than 
the end of the period described in section 691(a), 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
each eligible entity participating in a program fund-
ed under this subtitle shall— 
‘‘(A) adopt performance benchmarks that 
include indicators concerning attainment of the 
goals of the entity’s annual community action 
program plans described in section 673(2), indi-
cators of timely and effective management of 
Federal and other funds, and indicators of com-
pliance with the requirements of this subtitle; 
‘‘(B) participate in a statewide perform-
ance measurement system under section 687, 
including— 
‘‘(i) contributing to reports on indica-
tors of results as measured by the state-
wide system; 
‘‘(ii) establishing and tracking per-
formance on indicators concerning attain-
ment of the goals of the entity’s commu-
nity action strategic plan and community 
action program plan; 
‘‘(iii) measuring the entity’s perform-
ance regarding governance, organizational 
development, and professional development 
of agency personnel; and 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(iv) establishing an internal manage-
ment system that incorporates information 
regarding results into subsequent plans, 
procedures, and budgets; and 
‘‘(C) conduct community-wide comprehen-
sive community needs assessments including as-
sessments of local opportunities to reduce pov-
erty and use the results as a basis for commu-
nity action strategic plans, for programs, 
projects, and services provided by the entity, for 
public engagement in addressing the causes of 
poverty and the expansion of local economic op-
portunities, and for the development of linkages 
among partners that will reinforce initiatives 
funded under this subtitle, except that funds 
used for such activities shall not be considered 
administrative funds. 
‘‘SEC. 680A. STATE AND LOCAL USES OF FUNDS. 
‘‘(a) STATE SUBGRANTS TO ELIGIBLE ENTITIES AND 
OTHER ORGANIZATIONS.— 
‘‘(1) IN
GENERAL.—A State that receives a 
grant under section 677 or 678 shall reserve 2 per-
cent of the funds made available through the grant 
for the Community Action Innovations Program de-
scribed in subsection (c) and, of the remainder, use 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
not less than 90 percent to make subgrants to eligi-
ble entities to enable the entities to implement pro-
grams, projects, or services for a purpose described 
in section 672. 
‘‘(2) OBLIGATIONAL REQUIREMENTS.— 
‘‘(A) DATE
OF
OBLIGATION.—The State 
shall obligate the funds from the portion de-
scribed in paragraph (1) to make subgrants 
under paragraph (1) not later than the later 
of— 
‘‘(i) the 30th day after the date on 
which the State receives from the Sec-
retary a Notice of Funding Availability for 
the State’s approved State application 
under section 680; or 
‘‘(ii) the first day of the State pro-
gram year for which such funds are ap-
proved to be expended under the State ap-
plication. 
‘‘(B) AVAILABILITY.—Funds allocated to 
eligible entities through subgrants made in ac-
cordance with paragraph (1) for a fiscal year 
shall be available for obligation by the eligible 
entity during that fiscal year and the suc-
ceeding fiscal year, subject to paragraph (3). 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(3) RECAPTURE AND REDISTRIBUTION OF UN-
OBLIGATED FUNDS.— 
‘‘(A) RECAPTURING FUNDS.—A State may 
recapture and redistribute funds distributed to 
an eligible entity for a fiscal year through a 
subgrant made under paragraph (1) that are 
unobligated at the end of the fiscal year if such 
unobligated funds exceed 20 percent of the 
amount of funds so distributed to such eligible 
entity for such fiscal year unless the community 
action program plan approved by the State in-
cluded a higher percentage of unobligated 
funds. 
‘‘(B) REDISTRIBUTING FUNDS.—In redis-
tributing funds recaptured in accordance with 
this paragraph, a State shall redistribute such 
funds to another eligible entity that is a com-
munity action agency and is capable of pro-
viding services similar to the services provided 
by the original recipient of funds in the area 
served. If no such community action agency is 
available, the State may redistribute the funds 
to a private, nonprofit organization that has 
demonstrated capacity to deliver similar services 
to residents of the community and that is lo-
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
cated in that service area, for activities con-
sistent with the objectives of this subtitle. 
‘‘(b) STATEWIDE ACTIVITIES.— 
‘‘(1) USE OF REMAINDER.— 
‘‘(A) IN GENERAL.—A State that receives 
a grant under section 677 or 678 shall, after 
carrying out subsection (a), use the remainder 
of the grant funds for activities described in the 
State’s application approved by the Secretary 
under section 680(b) as described in subpara-
graphs (B) and (C) and for administrative ex-
penses subject to the limitations in paragraph 
(2). 
‘‘(B) TRAINING AND TECHNICAL ASSIST-
ANCE.—After applying subsection (a) and sub-
paragraph (C), the State may use the remain-
ing grant funds for the purposes of— 
‘‘(i) providing to eligible entities train-
ing and technical assistance and resources 
to respond to specific statewide or regional 
conditions that create economic insecurity, 
including, but not limited to, emergency 
conditions; 
‘‘(ii) supporting professional develop-
ment activities for eligible entities that en-
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
hance the skills of their local personnel (in-
cluding skills of members of the board of 
directors of such entities) that such per-
sonnel need to manage private, nonprofit 
organizations, including skills for designing 
and delivering effective support to individ-
uals seeking opportunities for economic se-
curity, and skills for designing and man-
aging programs, projects, or services that 
lead to change in the economic and social 
assets and opportunities of the community, 
giving priority to activities carried out 
through partnerships of the organizations 
with institutions of higher education; 
‘‘(iii) supporting information and com-
munication resources for the comprehen-
sive community needs assessments de-
scribed in section 680(a)(2)(C); 
‘‘(iv) supporting performance meas-
urement systems consistent with the re-
quirements of sections 680(c) and 682(b), 
including establishing systems to measure 
the effectiveness of training delivered 
under clause (i), and publishing the results 
of measurements taken under the systems; 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(v) promoting coordination and co-
operation among eligible entities in the 
State including supporting activities of a 
statewide association of community serv-
ices network organizations; and 
‘‘(vi) supporting the activities of pri-
vate non-profit organizations which meet 
the purposes of this subtitle and which co-
ordinate such activities with community 
services network organizations in the 
State. 
‘‘(C) INNOVATIVE PROJECTS TO REDUCE 
POVERTY.— 
‘‘(i) IN
GENERAL.—The State shall 
use 
amounts 
reserved 
under 
section 
680A(a)(1) for a Community Action Inno-
vations Program to award subgrants, con-
tracts, or cooperative agreements to eligi-
ble entities, or their associations, to carry 
out innovative projects to test or replicate 
promising new practices designed to reduce 
poverty conditions and to disseminate the 
results of such projects for public use. 
‘‘(ii) EXPENSES.—The funds reserved 
for projects under this subparagraph may 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
be used for reasonable expenses, of States 
and subgrantees, associated with adminis-
tration of such projects and dissemination 
of their results. 
‘‘(iii) AWARDS AND OBLIGATION.—A 
State shall award and obligate funds re-
served for projects under this subpara-
graph during the first program year for 
which the funds are appropriated. Funds 
provided under this subparagraph shall re-
main available until expended for an inno-
vative project if the period for that expend-
iture is specified in an approved plan de-
scribed in subparagraph (D) for that inno-
vative project. 
‘‘(iv) MATCHING REQUIREMENTS.—In 
the case of innovative projects that are 
funded in part by funds authorized under 
a Federal law other than this subtitle, that 
includes requirements for matching the 
Federal funds with non-Federal funds, 
funds made available under this subsection 
may be deemed to be local funding for pur-
poses of requirements of such law. 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(v) REAL PROPERTY.—Land or fa-
cilities improved through a project receiv-
ing an award under this subparagraph, for 
which the amount of the award is less than 
50 percent of the total project cost, shall 
not be subject to the provisions of section 
688(a). 
‘‘(vi) ELIGIBILITY.—Activities funded 
under this section may include participants 
with incomes not exceeding 80 percent of 
the area median income. 
‘‘(D) PLAN FOR STATE USE OF TRAINING, 
TECHNICAL
ASSISTANCE, 
AND
INNOVATION 
FUNDS.—To be eligible to use grant funds as 
described in subparagraph (B) or (C), each 
State shall submit, not later than the end of the 
transition period described in section 691(a), as 
part of the annual State plan submitted under 
section 680(b), a training, technical assistance, 
and innovation plan, developed in consultation 
with the community service network organiza-
tions in the State, that— 
‘‘(i) shall cover up to 2 years; and 
‘‘(ii) shall set forth information de-
scribing the way the requirements of that 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
subparagraph will be implemented and a 
quality assurance system for providers of 
the training, technical assistance, or inno-
vation project involved. 
‘‘(2) ADMINISTRATIVE CAP.— 
‘‘(A) LIMITATION.—No State may spend 
more than 5 percent of the remainder of the 
funds after the reservation for the State com-
munity action innovations fund as described in 
section 680A(a)(1) for administrative expenses. 
‘‘(B) DEFINITION.—In this paragraph, the 
term ‘administrative expenses’— 
‘‘(i) means the costs incurred by the 
State’s lead agency for carrying out plan-
ning and management activities, including 
monitoring, oversight, and reporting as re-
quired by this Act; and 
‘‘(ii) does not include the cost of ac-
tivities conducted under paragraph (1)(B) 
other than monitoring. 
‘‘(c) ELIGIBLE ENTITY USE OF FUNDS.—An eligible 
entity that receives a subgrant under section 680A(a) shall 
use the subgrant funds to carry out a community action 
program plan with programs, projects, and services that 
shall include— 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(1) 
the 
activities 
described 
in 
section 
680(a)(2)(C) regarding periodic assessment of pov-
erty conditions and opportunities to alleviate such 
conditions in connection with convening community- 
wide planning activities; and activities that achieve 
greater participation of the residents of the commu-
nities served in the affairs of the community and the 
organization and one of more of the activities in 
paragraph (2) or (3); 
‘‘(2) programs, projects, or services that are de-
signed to assist low-income individuals and families 
by providing access to local opportunities for achiev-
ing and maintaining economic security, which may 
include opportunities for the individuals and fami-
lies— 
‘‘(A) to secure and retain meaningful em-
ployment at a family-supporting wage; 
‘‘(B) to secure an adequate education, im-
prove literacy and language ability, and obtain 
job-related skills; 
‘‘(C) to make better use of available in-
come and build assets; 
‘‘(D) to obtain and maintain adequate 
housing and a healthy living environment, in-
cluding addressing the heath care needs of indi-
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
viduals and families with services and through 
changes in local institutions and workplaces (in-
cluding institutions and workplaces managed by 
the eligible entity); and 
‘‘(E) to obtain emergency materials or 
other assistance to meet immediate individual 
or community urgent needs and prevent greater 
or more prolonged economic instability; and 
‘‘(3) programs, projects, or services that im-
prove living conditions, increase employment, and ex-
pand other economic opportunities in the community 
served, which may include— 
‘‘(A) activities that develop and maintain 
partnerships for the purpose of changing com-
munity, economic, and social conditions of pov-
erty, between the eligible entity and— 
‘‘(i) State and local public entities 
(such as schools, institutions of higher edu-
cation, housing authorities, and law en-
forcement agencies); and 
‘‘(ii) private partners, including state-
wide and local businesses, associations of 
private employers, and private charitable 
and civic organizations; 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
‘‘(B) activities that establish linkages 
among organizations for coordinating initia-
tives, services, and investments so as to avoid 
duplication, and maximize the effective use of 
community resources for creating economic op-
portunity, including developing lasting social 
and economic assets; and 
‘‘(C) activities that mobilize new invest-
ments in the community to reduce the incidence 
of poverty, including developing lasting social 
and economic assets. 
‘‘SEC. 681. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS. 
‘‘(a) DESIGNATION AND REDESIGNATION OF ELIGI-
BLE ENTITIES IN UNSERVED AREAS.— 
‘‘(1) IN GENERAL.—If any geographic area of a 
State is not, or ceases to be, served by an eligible 
entity the lead agency shall, in consultation with 
local officials and organizations representing the 
area, solicit one or more applications and designate 
a new community action agency to provide pro-
grams, projects, or services to the area that is— 
‘‘(A) a community action agency that is 
geographically located in an area within reason-
able proximity of or contiguous to the unserved 
area that is already providing similar programs, 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
projects, or services, and that has demonstrated 
financial capacity to manage and account for 
Federal funds; or 
‘‘(B) if no community action agency de-
scribed in subparagraph (A) is available, a pri-
vate, nonprofit organization (which may include 
an eligible entity) that is geographically located 
in, or in reasonable proximity to, the unserved 
area and that is capable of providing a broad 
range of programs, projects, or services de-
signed to achieve the purposes of this subtitle 
as stated in section 672. 
‘‘(2) REQUIREMENT.—In order to serve as the 
eligible entity for the service area, an entity de-
scribed in paragraph (1) shall agree to ensure that 
the governing board of directors of the entity will 
meet the requirements of subsection (b)(1)(C). 
‘‘(3) COMMUNITY.—A service area referred to 
in this subsection or a portion thereof shall be treat-
ed as a community for purposes of this subtitle. 
‘‘(b) MERGERS OR PRIVATIZATION OF ELIGIBLE EN-
TITIES.— 
‘‘(1) IN GENERAL.—If 
‘‘(A) two or more eligible entities deter-
mine that the geographic areas of a State which 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
they serve can be more effectively served under 
a single corporate structure; or 
‘‘(B) a public organization that is an eligi-
ble entity determines that the area it serves can 
be more effectively served if it becomes a pri-
vate public charity; 
a State shall assist in developing a plan for implementing 
such merger or privatization, including a budget for tran-
sitional costs not to exceed two years duration, and, upon 
approving such plans, may notify the Secretary that the 
entities are in need of and eligible for funds from the 
merger 
incentive 
fund 
established 
in 
section 
683(a)(1)(B)(iv). 
‘‘ 
‘‘(2) PLANS.—States may establish require-
ments for merger or privatization plans and for a 
determination that the merged or privatized entity, 
or entities, will be capable of conducting a program 
consistent with the comprehensive needs assessments 
for the areas served. 
‘‘(c) TRIPARTITE BOARDS.— 
‘‘(1) PRIVATE, NONPROFIT ORGANIZATIONS.— 
‘‘(A) BOARD.—In order for a private, non-
profit organization to be considered to be an eli-
gible entity for purposes of section 673(1), the 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS
entity shall be governed by a tripartite board of 
directors described in subparagraph (C) that 
fully participates in the development, planning, 
implementation, oversight, and evaluation of the 
program, project, or service carried out or pro-
vided through the subgrant made under section 
680A(a) and all activities of the entity. 
‘‘(B) SELECTION.—The members of the 
board referred to in subparagraph (A) shall be 
selected by the entity. 
‘‘(C) COMPOSITION OF BOARD.—The board 
shall be composed so as to assure that— 
‘‘(i) 1⁄3 of the members of the board 
are elected public officials holding office on 
the date of selection, or their representa-
tives (but if an elected public official 
chooses not to serve, such official may des-
ignate a representative to serve as the vot-
ing board member); 
‘‘(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 
VerDate Sep 11 2014 
21:29 Apr 16, 2015
Jkt 049200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H1655.IH
H1655
mstockstill on DSK4VPTVN1PROD with BILLS