42 U.S. Code § 9909 - Designation and redesignation of eligible entities in unserved areas
(a) Qualified organization in or near area
(1) In general
If any geographic area of a State is not, or ceases to be, served by an eligible entity under this chapter, and if the chief executive officer of the State decides to serve such area, the chief executive officer may solicit applications from, and designate as an eligible entity—
(A) a private nonprofit organization (which may include an eligible entity) that is geographically located in the unserved area, that is capable of providing a broad range of services designed to eliminate poverty and foster self-sufficiency, and that meets the requirements of this chapter; and
In order to serve as the eligible entity for the area, an entity described in paragraph (1)(B) shall agree to add additional members to the board of the entity to ensure adequate representation—
(A) in each of the three required categories described in subparagraphs (A), (B), and (C) of section 9910 (a)(2) of this title, by members that reside in the community comprised by the unserved area; and
(b) Special consideration
In designating an eligible entity under subsection (a) of this section, the chief executive officer shall grant the designation to an organization of demonstrated effectiveness in meeting the goals and purposes of this chapter and may give priority, in granting the designation, to eligible entities that are providing related services in the unserved area, consistent with the needs identified by a community-needs assessment.
(c) No qualified organization in or near area
If no private, nonprofit organization is identified or determined to be qualified under subsection (a) of this section to serve the unserved area as an eligible entity the chief executive officer may designate an appropriate political subdivision of the State to serve as an eligible entity for the area. In order to serve as the eligible entity for that area, the political subdivision shall have a board or other mechanism as required in section 9910 (b) of this title.
Source(Pub. L. 97–35, title VI, § 676A, as added Pub. L. 105–285, title II, § 201,Oct. 27, 1998, 112 Stat. 2739.)
A prior section 9909,Pub. L. 97–35, title VI, § 680,Aug. 13, 1981, 95 Stat. 517; Pub. L. 99–425, title IV, § 405(c)(2),Sept. 30, 1986, 100 Stat. 970; Pub. L. 103–171, § 7(c)(3),Dec. 2, 1993, 107 Stat. 1994, related to limitation on use of grants for construction and waiver of such limitation, prior to the general amendment of this chapter by Pub. L. 105–285.