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USDA GRANTS AND LOANS
Mr. Vernon Brown
Re: 10.446
According to the NOFA 10.446:
Funding is available for these objectives:
2. Develop the capacity of recipients to conduct community development programs, e.g., homeownership education or training for business entrepreneurs. 3. Develop the capacity of recipients to conduct development initiatives, e.g., programs that support micro-enterprise and sustainable development.
The recipient’s capacity is built by learning skills that will enable them to support sustainable3 E:\FR\FM\26JNN1.SGM 26JNN1 economic development in their communities on an ongoing basis.
Funding is not available for:
3. Construction (in any form). 4. Salaries for positions involved in construction, renovations, rehabilitation, and any oversight of these types of activities
Federal Register /Vol. 74, No. 122 / Friday, June 26, 2009 /Notices 30513
Mutual Aid Society of America, Inc., a Kentucky non-profit corporation, proposes to apply for a grant under the above notice to teach low-income residents of Nelson County, KY, to build their own residence using straw bale building systems. You can read how this can be done at: http://strawbalebuilders.wetpaint.com/
Most of the beneficiaries we would likely engage in this training, both at the “train the trainer” level and the would-be home builder, would learn best by hands-on training, e.g. actually build a straw bale home, shop or barn. A combination of classroom learning and “laboratory” learning is indicated for the best return on the funds spent and the time and effort of the learners.
The obvious problem with the above Notice in this context is the definition of “construction”. If learning how to build affordable homes in an impoverished area is the goal, and the construction of those homes are best done by the future owners (“sweat equity”), then how is such goal to be achieved within the scope of CFDA 10.446?
If 10.446 cannot be used, is there a USDA or HUD program which does fit our proposed project? Further, if a local community organization wanted to assist low income residents to build their own home by providing a loan or grant for materials, supplies and equipment and marshaling local community members to provide the labor, is there a USDA program for funding such an effort? This concept is based on the old “barn raising” ethics whereby neighbors joined forces and built several barns, each on different farms of those who contributed labor or materials.
For instance, one owner might have a wood lot with saw wood logs. Another owner might have a bandsaw mill which could dimension the logs. Several members would have chain saws. Another would have a tractor for dragging the cut logs to the bandsaw mill. Another might have barn space where the boards could be stacked with stickers for drying. Another might have a blow torch style heater for drying the wood stack. Other skills which are needed, but not present in the community group, might be taught by the recipient, Mutual Aid Society of America, Inc. (MASA)
If in teaching the skills, MASA could not use any part of the grant for the “laboratory” part of the training (hands-on construction of a house as part of the learning experience), then the restriction against “constructions” kills the grant and kills the proposed program. If that were the case, then the efforts of Congress and the President would be at naught in teaching low income residents to build their own affordable homes.
In my personal experience, having built several of my homes, there is a great amount of pride in building one's own residence. The owner tends to maintain the home in much better condition than contractor built stick houses. The owner-built house tends to be of higher quality than the typical track house, because the owner is also the person responsible for maintenance; thus there is a quality incentive which is opposed to the profit incentive of track house builders. These values would be taught by the program we propose.
Your reply is requested.
Re: 10.446
According to the NOFA 10.446:
Funding is available for these objectives:
2. Develop the capacity of recipients to conduct community development programs, e.g., homeownership education or training for business entrepreneurs. 3. Develop the capacity of recipients to conduct development initiatives, e.g., programs that support micro-enterprise and sustainable development.
The recipient’s capacity is built by learning skills that will enable them to support sustainable3 E:\FR\FM\26JNN1.SGM 26JNN1 economic development in their communities on an ongoing basis.
Funding is not available for:
3. Construction (in any form). 4. Salaries for positions involved in construction, renovations, rehabilitation, and any oversight of these types of activities
Federal Register /Vol. 74, No. 122 / Friday, June 26, 2009 /Notices 30513
Mutual Aid Society of America, Inc., a Kentucky non-profit corporation, proposes to apply for a grant under the above notice to teach low-income residents of Nelson County, KY, to build their own residence using straw bale building systems. You can read how this can be done at: http://strawbalebuilders.wetpaint.com/
Most of the beneficiaries we would likely engage in this training, both at the “train the trainer” level and the would-be home builder, would learn best by hands-on training, e.g. actually build a straw bale home, shop or barn. A combination of classroom learning and “laboratory” learning is indicated for the best return on the funds spent and the time and effort of the learners.
The obvious problem with the above Notice in this context is the definition of “construction”. If learning how to build affordable homes in an impoverished area is the goal, and the construction of those homes are best done by the future owners (“sweat equity”), then how is such goal to be achieved within the scope of CFDA 10.446?
If 10.446 cannot be used, is there a USDA or HUD program which does fit our proposed project? Further, if a local community organization wanted to assist low income residents to build their own home by providing a loan or grant for materials, supplies and equipment and marshaling local community members to provide the labor, is there a USDA program for funding such an effort? This concept is based on the old “barn raising” ethics whereby neighbors joined forces and built several barns, each on different farms of those who contributed labor or materials.
For instance, one owner might have a wood lot with saw wood logs. Another owner might have a bandsaw mill which could dimension the logs. Several members would have chain saws. Another would have a tractor for dragging the cut logs to the bandsaw mill. Another might have barn space where the boards could be stacked with stickers for drying. Another might have a blow torch style heater for drying the wood stack. Other skills which are needed, but not present in the community group, might be taught by the recipient, Mutual Aid Society of America, Inc. (MASA)
If in teaching the skills, MASA could not use any part of the grant for the “laboratory” part of the training (hands-on construction of a house as part of the learning experience), then the restriction against “constructions” kills the grant and kills the proposed program. If that were the case, then the efforts of Congress and the President would be at naught in teaching low income residents to build their own affordable homes.
In my personal experience, having built several of my homes, there is a great amount of pride in building one's own residence. The owner tends to maintain the home in much better condition than contractor built stick houses. The owner-built house tends to be of higher quality than the typical track house, because the owner is also the person responsible for maintenance; thus there is a quality incentive which is opposed to the profit incentive of track house builders. These values would be taught by the program we propose.
Your reply is requested.
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