Appalachian Area Development (23.002)
Program
23.002 Appalachian Area Development
Federal Agency
APPALACHIAN REGIONAL COMMISSION
Authorization
Appalachian Regional Development Act of 1965, Public Law 89-4, as amended; Appalachian Regional Development Reform Act of 1998, Public Law 105-393.
Program Number
23.002
Last Known Status
Active
Objectives
To help the regional economy become more competitive by putting in place the building blocks for self-sustaining economic development, while continuing to provide special assistance to the Region's most distressed counties. This program focuses on activities which support ARC's mission to create opportunities for self-sustaining economic development and improved quality of life in the region. Activities funded must advance ARC's strategic plan. Specific program goals are: (1) Appalachian residents will have the skills and knowledge necessary to compete in the world economy in the 21st century; (2) Appalachian communities will have the physical infrastructure necessary for self-sustaining economic development and improved quality of life; (3) The people of Appalachia will have the vision and capacity to mobilize and work together for sustained economic progress and improvement of their communities; (4) Appalachian residents will have access to financial and technical resources to help build dynamic and self-sustaining local economies; and (5) Appalachian residents will have access to affordable, quality health care. Specific objectives were developed for each goal. Grants are made either directly by the Commission or grants may supplement other Federal grants.
Types of Assistance
Project Grants.
Uses and Use Restrictions
The grants may be used for providing supplemental funds under any Federal grant-in-aid programs. To be eligible for special basic grants, projects must be of high priority in the State's Appalachian development plan and be either of critical importance to a phased investment and development program for a multicounty area, or of unusual economic benefit to such area. Refer to "General Provisions for Area Development Program" of the Appalachian Regional Commission Code for additional use restrictions.
Eligibility Requirements
Applicant Eligibility
States, their subdivisions and instrumentalities and private nonprofit agencies.
Beneficiary Eligibility
General public.
Credentials/Documentation
Any finding, report, certification, or documentation required to be submitted to the head of the department, agency, or instrumentality of the Federal Government responsible for the administration of the basic Federal grant-in-aid program shall be accepted by the Federal Co-chairman with respect to a supplemental grant for any project under such program. Projects must conform to the ARC Code, the ARD Act, and the Appalachian Plan and Strategy Statement and Investment Program which are submitted annually. Commission regulations require that the Appalachian State Development Plan, Strategy Statement and Investment Program, due prior to December 15, must be approved and submitted by the Governors. Costs will be determined in accordance with OMB Circular applicable to the grantee.
Application and Award Process
Preapplication Coordination
The State Alternate's Office is the coordinator for Appalachian investments. Pre-application conferences with the Appalachian local district director or the State Alternate's Office can determine within a few weeks if the project can be related to the State Appalachian development plan. The State Alternate Office will provide guidance on specific problems and technical assistance in preparation of applications. An environmental impact statement may be required for this program, depending on the basic Federal grant-in-aid program being assisted. The standard application forms as furnished by the Federal agency and required by OMB Circular No. A-102 must be used for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
Application must be submitted and approved by the State member of the ARC. All proposed projects must conform to the State Strategy Statement submitted annually prior to December 15. Guidelines and forms for funding Appalachian development projects are available from the local development district director and the State Alternate's Office. A letter of transmittal signed by the State member and an executed ARC Form 1 is required with the submission.
Award Procedure
Upon determination that the State approved project is eligible within a Commission approved Appalachian State Development Plan and Strategy Statement and Investment Program, the Federal Co-Chairman determines that the project satisfies all Federal requirements. If a basic Federal agency will administer the project it is then notified and will disburse the grant funds when appropriate. The ARC notifies Congressional Offices and the Office of the Governor of grant awards.
Deadlines
Proposed projects are submitted by the States and must be submitted according to deadlines set by each State.
Range of Approval/Disapproval Time
Appeals
None.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
At least 20 percent of the eligible development costs must be obtained from sources other than the Federal Government for construction and equipment projects under Sections 202, and 214 of the ARD Act. At least 90 percent of the eligible development costs must be obtained from sources other than the Federal Government for construction assistance for housing projects, and at least 20 percent must be obtained from sources other than the Federal Government for planning and technical assistance for housing projects under Section 207 of the ARD Act. ARC-administered demonstration grants under Section 302(a)(3) of the ARD Act and other Commission grants are also subject to geographic funding restrictions as follows: in general, Commission assistance is restricted to 50 percent of project costs. This can be raised to 80 percent in Commission-designated distressed counties and is further limited to 30 percent in Commission-designated competitive counties. ARC assistance is generally not available for projects located in Commission-designated attainment counties. The ARC Code and "Appalachian Regional Commission Project Guidelines" furnish details.
Length and Time Phasing of Assistance
Assistance is provided until completion; funds are transferred to the basic Federal agency and disbursed as appropriate. ARC reserves the right to withdraw grants for projects not under contract within 18 months of approval.
Post Assistance Requirements
Reports
Reporting and performance monitoring as required by the basic Federal agency or the Commission, as appropriate.
Audits
Audits as required by the basic Federal agency and the Commission. In accordance with the Single Audit Act Amendments of 1996, Public Law 104-156. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.
Records
Records as required by the basic Federal agency. Under the total audit concept, audits will be made on an organization-wide basis (rather than grant-by-grant) under GAO guidelines, Standards for Audit of Governmental Organizations, Programs, Activities and Functions, and for programs covered by A-102, Attachment P.
Program Accomplishments
In fiscal year 2001, 449 projects were approved. The States concentrated efforts on meeting a variety of pressing needs in the Region including projects for water and sewer systems, industrial parks, entrepreneurship, training, vocational education, leadership, export promotion, health care, child development, revolving loans, and business incubators, in conjunction with private sector commitments.
Financial Information
Account Identification
46-0200-0-1-452.
Obligations
FY 02 $52,638,000; FY 03 est $90,119,000; and FY 04 est not available.
Range and Average of Financial Assistance
The range is from $4,742 to $1,500,000.
Regulations, Guidelines and Literature
"The Appalachian Regional Commission Code" (limited distribution); "Appalachian Regional Commission Project Guidelines" (limited distribution); applicable State Appalachian Plans and Guidelines; "Appalachia" - a journal devoted to the special problems of regional development; Annual Reports, no charge.
Related Programs
23.011, Appalachian State Research, Technical Assistance, and Demonstration Projects; 84.048, Vocational Education_Basic Grants to States.
Information Contacts
Regional or Local Office
Refer to Appendix IV of the Catalog.
Headquarters Office
Inquiries and proposals for projects should be submitted first to the Appalachian State office designated by the Governor. (See Appendix IV of the Catalog.) Other inquiries may be addressed to: Executive Director, Appalachian Regional Commission, 1666 Connecticut Avenue, NW., Washington, DC 20235. Telephone: (202) 884- 7700. Use the same number for FTS.
Web Site Address
Examples of Funded Projects
See USES AND USE RESTRICTIONS.
Criteria for Selecting Proposals
See APPLICATION AND AWARD PROCESS.
