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tive use of resources to meet the needs of area residents.

(v) A subcommittee on each CAA Board, including representatives of the poor, as well as qualified staff, should be assigned specific responsibilities to assure that the CAA is providing effective assistance and support to the development of neighborhood or target area organization capabilities.

(5) Delegate agencies. (i) When programs and funds are delegated by the CAA, the CAA shall require the same policies and procedures for participation of the poor as those established in this subpart for CAAs.

(ii) Delegate agencies established specifically to operate programs funded through the CAA (such as area or county policy boards or councils servicing an entire political subdivision) or whose primary responsibility is for programs sponsored by the CAA must have governing boards at least one-third of whose members are democratically selected representatives of the poor residing within that area. In the case of those area boards or council which cover less than an entire political subdivision, at least a majority of its members must be representatives of the poor residing within the area. Target area or neighborhood based organizations or corporations may have boards composed solely of the democratically selected representatives of area residents, but in those cases where major policy or funding responsibilities are delegated, provision must be made for representation of elected public officials.

(iii) Delegate agencies whose primary responsibilities are for programs not sponsored by the CAA (such as school boards) must establish an advisory board or committee to assist in the planning, conduct, and evaluation of its community action programs. At least a majority of the membership of such boards must be democratically selected representatives of the poor served by the delegated community action program.

(c) Limited purpose agencies. Limited purposes agencies shall have either a governing body made up of one-third representatives of the poor or a policy advisory committee composed of at least 50 percent democratically se

lected representatives of the poor being served by the OEO-funded program. Limited purpose agencies shall take the initiative in developing measures to implement the same requirements described in this subpart for every CAA for the participation of the poor in the planning, conduct, and evaluation of OEO-funded programs. The burden of proof shall be on the limited purpose agency to document in writing if it is legally unable to abide by the standards of this subpart.

(d) State Economic Opportunity Offices. (i) In addition to assisting in the implementation of the general policy statement of this subpart, the State Economic Opportunity Office (SEOO) shall promote the maximum feasible participation of poor people in the planning, conduct and evaluation of other state agency operations and programs which affect the poor. The SEOO shall encourage and work toward the development of career opportunities for the poor within other state agencies.

(ii) State Economic Opportunity Offices, whenever possible and consistent with State laws and regulations, shall employ poor people as staff or as consultants to help carry out training and technical assistance functions to community action programs.

(iii) Each SEOO which operates OEOfunded statewide poverty programs shall establish an advisory committee of representatives of the poor. When the SEOO submits an application for the funding of a statewide program, it shall have established an advisory committee which shall have participated in planning the programs. A representative elected by the representatives of the poor of each CAA Board in the state shall serve as a member of the SEOO Advisory Committee. These SEOO Advisory Committees shall:

(a) Meet not less than four times a year;

(b) Participate in the development of policies and procedures for the statewide programs; review and comment on the programs; participate in evaluations; and present their findings to the SEOO for its consideration;

(c) Recommend to the SEOO the advisability of operating new statewide programs.

(iv) Funds for transportation, babysitting, and per diem to enable these representatives of the poor to participate regularly in advisory committee meetings shall be provided by the SEOO from OEO funds.

(e) Participation through employment. (i) Every grantee, including SEOOS which operate OEO-funded statewide poverty programs, and delegate agency must develop and include in their personnel policies specific plans to fill staff positions to the greatest extent possible with individuals who are poor. Such policies must emphasize opportunities for training and career advancement and for employment of poor people in staff positions which are directly involved in the planning, budgeting, funding, conduct, administration and evaluation of the programs.

(ii) These policies must provide for (a) the development of job and staffing requirements (by analyzing jobs to determine if a professional is needed and by breaking down jobs in such a way to create "new careers") so as to maximize the number of nonprofessional positions; (b) the establishment of job qualifications based on the personal ability of an individual to perform, rather than on formal requirements of education and experience; (c) career development through increasing the amount of responsibility in the task performed so that poor persons employed by the CAA may have opportunities for advancement to the fullest extent of their abilities; and (d) continued on-the-job training and constructive supervision needed to permit advancement.

(iii) Every CAA further has the responsibility for developing career opportunities for the poor in other local agencies, both public and private.

(f) Participation in evaluation. Community Action Agencies, limited purpose agencies, and State Economic Opportunity Offices must obtain the views of program participants and area residents as well as the views of representatives of the poor on boards, committees and councils as part of their evaluation of grantee or delegate agency programs and operations.

§ 1060.1-3 Procedures.

(a) Compliance (1) Grantee and delegate agency report. Each grantee and delegate agency has a responsibility to implement the policies and standards of this subpart. Implementation of this subpart should be clearly reflected in the agency's planning, program development, and budgeting processes and should be evaluated in writing by the agency every year. A report of progress should accompany the refunding request as a part of the agency's selfevaluation. Such a progress report will include:

(i) A summary of policies and procedures established to carry out this subpart;

(ii) A description of progress in improving the quality of participation.

(2) Participation of the poor in compliance. (i) In addition, every grantee and delegate agency's annual self evaluation shall include a section prepared by the representatives of the poor on the CAA, delegate agency or limited purpose agency Board, with the help of representatives of the poor on neighborhood, target area, or policy advisory boards, councils, and committees and of appropriate staff members. The representatives of the poor shall describe how the CAA, delegate agency, or limited purpose agency has:

(a) Provided opportunities for involvement of poor people in proposing, planning, approving, administering, operating and evaluating programs.

(b) Helped to develop the capacities of poor people to participate effectively. Special attention should be given to the amount of money and staff time devoted to training and technical assistance to increase and improve the involvement of poor people in the program.

(c) Responded to and supported the positions and requests of the poor and neighborhood groups regarding programs and issues which affect them.

(d) Promoted participation of the poor in the activities of other agencies and organizations in the community and in community-wide decision making.

(e) Development employment and career development opportunities for the poor.

Worked toward increased control by the poor and target area residents over the economic life in their neighborhoods or areas.

(ii) This evaluation shall be given full consideration by the Board of the grantee and shall be submitted to the appropriate Regional Office of OEO with its CAP form 81. OEO will not approve an application for funding that does not explicitly indicate a course of action that will lead to improvement in the quality of involvement of poor people in its program.

(3) State Economic Opportunity Office. As part of its application for funding, each State Economic Opportunity Office shall submit to the appropriate regional office a written report which describes its implementation of this subpart.

(b) Appeals. (1) Petitions (signed by from 50 to 100 persons from community agencies or representatives groups of the poor, depending on the procedures established in the grantee's bylaws) claiming (i) inadequate representation on grantee boards, (ii) inability to influence the character of programs, or (iii) grantee refusal to fund programs proposed by the poor, may be presented to the governing boards of grantee organizations.

(2) Such appeals must be considered by the governing body of the grantee organization at a public meeting publicized, conducted and recorded in accordance with OEO/CAP policies regarding public hearings. (Interim regulations covered in CA Memo 321 are being revised in OEO Instruction 70421 which will soon be distributed.)

(3) Notification of receipt of such petition must be sent within 5 days to the OEO Regional Office or Headquarters Office which is responsible for funding and monitoring the grantee. This should be followed by a statement of the action of the governing body on the petition and the reasons supporting the action.

(4) In addition to the above procedures, poor people, either as individuals or groups, are encouraged to continue to express themselves directly to OEO Regional Offices and Headquarters

1 Not filed with the Office of the Federal Register.

if they have complaints about the operation of OEO-funded programs.

Subpart 1060.2-CSA Income Poverty Guidelines (CSA Instruction 6004-1K)

§ 1060.2-1 Applicability.

This subpart applies to all grants financially assisted under titles II, IV and VII of the Economic Opportunity Act of 1964, as amended, if such assistance is administered by the Community Services Administration.

(Sec. 602, 78 Stat. 530, 42 U.S.C. 2942) [46 FR 15271, Mar. 5, 1981]

§ 1060.2-2 Policy.

(a) The attached income guidelines are to be used for all those CSA funded programs, whether administered by a grantee or delegate agency, which use CSA poverty income guidelines as admission standards. Any individual or family certified eligible for AFDC or SSI payments is automatically eligible for CSA program services without the need to be separately certified through the application of the attached income guidelines.

These guidelines do not supersede alternative standards of eligibility approved by CSA.

(b) The guidelines are also to be used in certain other instances where required by CSA as a definition of poverty, e.g., for purposes of data collection and for defining eligibility for allowances and reimbursements to board members. Agencies may wish to use these guidelines for other administrative and statistical purposes as appropriate.

(c) The attached guidelines are based upon Table 17 of the U.S. Bureau of the Census, Current Population Reports, Series P-60, No. 125, "Money Income and Poverty Status of Families and Persons in the United States: 1979" (Advance Report), U.S. Government Printing Office, Washington, D.C., October, 1980; and Department of Labor Press Release USDL 81-55 of January, 1981.

(d) The following definitions, from "Current Population Reports", P-60, No. 91, Bureau of the Census, December 1973 have been adopted by CSA for use with the attached poverty guidelines.

(1) Income. Refers to total cash receipts before taxes from all sources. These include money wages and salaries before any deductions, but not including food or rent in lieu of wages. These include receipts from self-employment or from own farm or business after deductions for business or farm expenses. They include regular payments from public assistance, social security, unemployment and workman's compensation, strike benefits from

union funds, veteran's benefits, training stipends, alimony, child support and military family allotments or other regular support from an absent family member or someone not living in the household; government employee pensions, private pensions and regular insurance or annuity payments; and income from dividends, interest, rents, royalties or income from estates and trusts. For eligibility purposes, income does not refer to the following money receipts: any assets drawn down as withdrawals from a bank, sale of property, house or car, tax refunds, gifts, one-time insurance payments or compensation for injury; also to be disregarded is non-cash income, such as the bonus value of food and fuel produced and consumed on

farms and the imputed value of rent from owner-occupied farm or non-farm housing.

(2) A farm residence. Is defined as any dwelling on a place of 10 acres or more with $50 or more annual sales of farm products raised there; or any place less than 10 acres having product sales of $250 or more.

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Benefits to Those Voluntarily
Poor (CSA Instruction 6004-2)

§ 1060.3-1 Applicability of this subpart. This subpart applies to all agencies receiving funds under titles I-D, II, and III-B of the Economic Opportunity Act for programs administered by OEO in which income criteria are used as admission standards (with the exception of Head Start and Upward Bound programs).

(Sec. 602, 78 Stat. 503; 42 U.S.C. 2942)

[34 FR 2419, Feb. 20, 1969]

§ 1060.3-2 Policy.

(a) Section 611 of the Economic Opportunity Act provides as follows:

The Director shall take such action as may be necessary to assure that, in determining a person's eligibility for benefits under this Act on account of his poverty, such person will not be deemed to meet the poverty criteria if his lack of income results from his

refusal, without good cause, to seek or accept employment commensurate with his health, age, education, and ability.

(b) Under section 611 of the Act, an individual should not be treated as meeting poverty criteria for project benefits if he is fully capable of supporting himself but deliberately chooses not to do so. For example, a person I having the education and training to earn an income substantially above the poverty line should not be considered eligible under the poverty criteria if, without good cause, he chooses not to work. On the other hand, an individual should not be excluded from project benefits if his lack of motivation is the result of a background of poverty. Section 201 of the Economic Opportunity Act explicitly recognizes that one goal of community action is to strengthen motivation among low-income people.

(c) Determinations regarding an individual's eligibility for project benefits under this subpart should be made as part of the existing screening process for these programs. Special screening procedures should not be created. In making determinations, grantee and delegate agencies must be sure that a needy person is not disqualified because of failure to seek or accept employment in situations where:

(1) Age or ill health, mental or physical, interferes with his ability to accept employment.

(2) Family obligations, especially the care of small children, interfere with his ability to accept employment.

(3) Transportation is not available to the job in question, or travel time or cost to and from work is unreasonable.

(4) Acceptance of the employment in question would subject him to the work situation to discrimination on account of race, color, creed, sex, or national origin.

(5) The employment which was available would not have given him an income above the poverty line. Since he would, in any event, remain in the target population, he should be considered eligible for antipoverty programs. Appropriate consideration should be given to such factors as the regularity of intermittence of the employment over time, and to seasonal patterns in employment, in determining whether the

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