Appalachian Area Development

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 and areas.

This program focuses on activities which support ARC's mission
to be a strategic partner and advocate for sustainable community and economic development.

Activities funded must advance ARC's strategic plan.

Specific program goals are: (1) Increase job opportunities and per capita income in Appalachia to reach parity with the nation; (2) Strengthen the capacity of the people of Appalachia to compete in the global economy; (3) Develop and improve Appalachia's infrastructure to make the Region economically competitive; and (4) Build the Appalachian Development Highway System to reduce Appalachia's isolation.

Specific objectives were developed for each goal.

Grants are made either directly by the Commission or grants may supplement other Federal grants.
Related Programs

Examples of Funded Projects

See USES AND USE RESTRICTIONS.


Agency - Appalachian Regional Commission

Office - Refer to Appendix IV of the Catalog.
Website Address

http://www.arc.gov



Program Accomplishments

In fiscal year 2007, 493 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.

Uses and Use Restrictions

The grants may be used for providing supplemental funds under 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, the State Appalachian Plan and annual State Strategy Statement. The Appalachian State Development Plan and the annual State Strategy Statement must be submitted by the Governors and approved by the Commission. Costs will be determined in accordance with OMB Circular applicable to the grantee.

Aplication and Award Process

Preapplication Coordination

The State Alternate's Office is the coordinator for Appalachian investments.

Preapplication 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's 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 Procedures

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 the Fall Commission meeting. 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 Procedures

Upon determination that the State approved project is eligible within a Commission approved Appalachian State Development Plan and Strategy Statement, 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.

Authorization

Appalachian Regional Development Act of 1965, Public Law 89-4, as amended, 40 U.S.C. 14101-14704; Appalachian Regional Development Act Amendments of 2002, Public Law 107-149.

Range of Approval/Disapproval Time

From 30 to 60 days after the receipt of the application at the Commission.

Appeals

None.

Renewals

None.

Assistance Considerations

Formula and Matching Requirements

Generally grants are limited to 50% of project costs. For projects in counties designated as economically distressed, this limit can be raised to 80%. For projects in counties designated as competitive (those that are approaching national economic norms), funding is usually limited to 30% of project costs. Funding is usually not available for projects located in counties that have attained or exceeded national economic norms. If otherwise eligible for funding, projects involving construction assistance for housing under the Appalachian Regional Development Act (ARDA) (40 U.S.C. 14503) cannot exceed 10% of total project costs regardless of location. Health operations continuation projects under ARDA (40 U.S.C. 14502) are limited to 75% of project costs after the second year of operations, even in distressed 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 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 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.

Financial Information

Account Identification

46-0200-0-1-452.

Obigations

FY 07 $58,917,132; FY 08 est $73,000,000; and FY 09 est not reported.

Range and Average of Financial Assistance

$1 to $1,782,000; $38,102.

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; Performance and Accountability Report, no charge.

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, N.W., Washington, DC 20009. Telephone: (202) 884- 7700. Use the same number for FTS.

Criteria for Selecting Proposals

See APPLICATION AND AWARD PROCESS.



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