Low Income Home Energy Assistance Program
Division of Energy Assistance/OCS/ACF

Announcement

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THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR CHILDREN AND
FAMILIES IN LIHEAP ACTION TRANSMITTAL NO. LIHEAP-AT-98-1, DATED 2/25/98

TO:              LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
                 GRANTEES AND OTHER INTERESTED PARTIES

SUBJECT:         Announcement of the Availability of Funds under the
                 Residential Energy Assistance Challenge Option Program
                 (REACH) for FY 1998

RELATED          Low Income Home Energy Assistance Act, Title XXVI
REFERENCES:      of the Omnibus Budget Reconciliation Act of 1981, Public
                 Law 97-35, as amended; the Human Services Amendments of
                 1994 (Public Law 103-252); and program announcement for
                 the Residential Energy Assistance Challenge Option Program
                 (REACH).

PURPOSE:         To advise grantees that a program announcement is hereby
                 being issued requesting applications for funds by May 26,
                 1998, under the Residential Energy Assistance Challenge
                 Option Program (REACH) for FY 1998.

BACKGROUND:      The Human Services Amendments of 1994 (Public Law 103-252)
                 amended Section 2607B of the LIHEAP statute to establish a
                 new Residential Energy Assistance Challenge Option Program
                 (REACH), funded for the first time in FY 1996.  REACH is
                 designed to help low income households reduce their energy
                 vulnerability.

                 REACH funds are available only to LIHEAP grantees (States,
                 territories, and Indian tribes/tribal organizations).
                 LIHEAP grantees that wish to receive REACH funds must
                 submit an application for those funds.  Up to 25% of the
                 funds set aside for the leveraging incentive program may
                 be earmarked for the REACH program.  In FY 1998, $25
                 million has been set aside for leveraging incentive grant
                 awards.

CONTENT:         By means of this information memorandum, the Office of
                 Community Services in the Department of Health and Human
                 Services is advising that funds are available to LIHEAP
                 grantees to run demonstration programs under the
                 Residential Energy Assistance Challenge Option Program
                 (REACH).  LIHEAP grantees that wish to receive REACH funds
                 must submit an application for the funds following
                 requirements laid out in the program announcement.  These
                 applications must be postmarked or submitted to a delivery
                 service no later than May 26, 1998.  (Note:  This is a
                 change from last year, when we required receipt of the
                 application in HHS by a specific date.)

                 To be considered for funding, application submissions must
                 bear a legibly dated official POSTMARK of the United
                 States Postal Service, or a legibly dated machine produced
                 postmark of a commercial mail service, showing a date no
                 later than May 26, 1998.  To be acceptable as proof of
                 timely mailing, a postmark from a commercial mail service
                 must include the logo/emblem of the commercial mail
                 service company and must reflect the date the package was
                 received by the commercial mail service company from the
                 applicant.  Postmarks of private postage metering machines
                 WILL NOT be considered as evidence of timely submission of
                 applications.  Faxed or electronically submitted
                 applications will not be accepted regardless of the date
                 or time of submission and time of receipt.

                 It is expected that approximately $6,000,000 will be made
                 available for grants under the REACH program announcement,
                 including supplemental grants for energy conservation
                 education activities.  States, the District of Columbia,
                 and Puerto Rico may apply for funds under Priority Area
                 1.0 of the program announcement.  Indian tribes, tribal
                 organizations, and territories other than Puerto Rico may
                 apply for REACH funds under Priority Area 2.0.  If
                 insufficient numbers of applications for funds are
                 received under Priority Area 2.0, any unused funds will be
                 assigned to Priority Area 1.0.  If sufficient numbers of
                 qualified applications for REACH funds are not received
                 under Priority Area 1.0, unused funds will be awarded
                 under the leveraging incentive program.  See the program
                 announcement for details.

ATTACHMENT:      Program announcement for availability of funds under the
                 Residential Energy Assistance Challenge Option Program
                 (REACH) for FY 1998


INQUIRIES TO:    Richard Saul, Director
                 Division of Community Demonstration Programs
                 Office of Community Services, ACF, HHS
                 370 L'Enfant Promenade, S.W.
                 Washington, D.C.  20447
                 Telephone:  (202) 401-9341




                                       ______________/s_____________
                                       Janet M. Fox
                                       Director
                                       Division of Energy Assistance
                                       Office of Community Services

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