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Administration for Children and Families US Department of Health and Human Services

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

Announcement of the Availability of Funds under the Residential Energy Assistance Challenge Option Program (REACH) for FY 1999

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THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR CHILDREN AND
FAMILIES IN LIHEAP ACTION TRANSMITTAL NO. LIHEAP-AT-99-1, DATED 2/17/99


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 1999

RELATED
REFERENCES:              Low Income Home Energy Assistance Act, Title XXVI
                         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 3, 1999, under the Residential Energy
                         Assistance Challenge Option Program (REACH) for FY
                         1999.

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, Indian tribes/tribal organizations, and
                         Insular Areas that expend their funds for
                         implementing a LIHEAP program).  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 1999, $27.5 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 3, 1999.

                         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 3, 1999.  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 insular areas
                         other than Puerto Rico that expend their funds for
                         implementing a LIHEAP program may apply for REACH
                         funds under Priority Area 2.0.  (Insular areas
                         that consolidate their LIHEAP funds under another
                         HHS block grant may not apply for REACH funds.)
                         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 1999

INQUIRIES TO:            Anna Guidery, Program Analyst
                         Demonstration and Special Projects Division
                         Office of Community Services, ACF, HHS
                         370 L'Enfant Promenade, S.W.
                         Washington, D.C.  20447
                         Telephone:  (202) 401-5318
                         E-Mail:  aguidery@acf.dhhs.gov

                                         or

                         Richard Saul, Director
                         Demonstration and Special Projects Division
                         Office of Community Services, ACF, HHS
                         370 L'Enfant Promenade, S.W.
                         Washington, D.C.  20447
                         Telephone:  (202) 401-9341
                         E-Mail:  rsaul@acf.dhhs.gov



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


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