YouthBuild Transfer Act Major Legislative Changes

1. YouthBuild Transfer ActMajor Legislative Changes

2. Under HUD, YouthBuild program was authorized under the Cranston-Gonzalez National Affordable Housing Act (Pub.L. 102-550, 106 Stat. 3723, 42 USC 12899) YouthBuild Transfer Act Public Law 109-281 YouthBuild Transfer ActManaged by DOL HOPE for Youth: YouthBuildManaged by HUD • Under DOL, YouthBuild program is added as Section 173 to Title 1, Subtitle D of the Workforce Investment Act of 1998 (29 U.S. 2919) • New regulations will be developed after public comment

3. The previous legislation focused on enhancing the supply of housing for homeless and low-income individuals and families, but placed less emphasis on employment skills and education. Statement of Purpose HOPE for Youth: YouthBuildManaged by HUD YouthBuild Transfer ActManaged by DOL • Under DOL a modified provision to the program’s statement of purpose places greater emphasis on preparing youth for occupations in demand and post-secondary education.

4. A provision existed for providing Planning grants.(former Section 12899b.) Grants HOPE for Youth: YouthBuildManaged by HUD YouthBuild Transfer ActManaged by DOL • The provision for providing Planning grants has been eliminated to ensure that more Federal funds are available to carry out YouthBuild program activities. • Selection criteria available to make grant decisions is expanded to include, among other things, an applicant’s focus on preparing youth for occupations in demand or post-secondary education, and the extent of an applicant’s coordination with the One-Stop delivery system.

5. 5% of funds are reserved for technical assistance Grants (continued..) HOPE for Youth: YouthBuildManaged by HUD YouthBuild Transfer ActManaged by DOL • 5% of funds are reserved for technical assistance • Up to 3% of funds may be reserved for capacity building activities, but costs must be leveraged with private resources (25% Federal share).

6. Specific activities were eligible for funding, but many workforce investment activities were not specifically authorized. Eligible activities HOPE for Youth: YouthBuildManaged by HUD YouthBuild Transfer ActManaged by DOL • Since the YouthBuild Program is linked to the workforce investment, eligible activities would include, among others: • Occupational skills training • Internships and job shadowing (paid & unpaid) • Alternative secondary school services • Comprehensive guidance and counseling (including drug and alcohol abuse)

7. Eligible activities (continued…) YouthBuild Transfer ActManaged by DOL • Job search and job placement assistance • Activities linking with “registered” apprenticeship programs • As with prior law, community service and peer centered activities would continue to be authorized to enhance the employment and leadership skills of participants.

8. The Cranston-Gonzalez Act placed extensive housing-related restrictions on the use, rental, and/or conveyance of properties constructed or rehabilitated by YouthBuild participants. Streamlined Housing Restrictions HOPE for Youth: YouthBuildManaged by HUD YouthBuild Transfer ActManaged by DOL • Under DOL the extensive housing-related restrictions are eliminated, but the law retains the essential restrictions limiting rental or conveyance to low-income or homeless individuals or families, or for use as transitional or permanent housing for the homeless.

9. New Requirements for Grant Applicants • Provide local labor market information • Including projected career opportunities in relevant fields • Describe relationship with workforce investment system and employers • Involve community and faith-based organizations to help recruit YouthBuild participants • Describe role of employers in the program • Describe expected results applying DOL’s “Common Performance Measures” • Ability to grant industry recognized skills-based certificates • Retains requirement to describe leveraging of other resources

10. Additional changes • Under DOL, limited YouthBuild funds may be used to pay for supervision and training costs allowing participants to develop skills and obtain work experience in rehabilitation or construction of community and other public facilities. • Coordination of the YouthBuild program with local workforce investment boards, One-Stop Career Centers and partner programs. • Eligible Youth: Age 16-24, a school drop out, and at least one of the following: a member of a low-income family, a foster care youth, a youth offender, a disabled youth, a child of incarcerated parents, a migrant youth. • Eligibility Exception: Up to 25% of program participants could be GED or secondary school graduates who are basic skills deficient or youth who are referred by a local secondary school for participation in a YouthBuild program. • YouthBuild programs shall be structured so that participants spend at least 50% of their time in education and related services; and at least 40% of their time in workforce investment activities (work experience, occupational skills training, job search, internships etc). This means that participants may now spend up to 60% of their time in the program on educational activities. • Common Performance Measures are now applicable allowing the development for Federal Youth and lifelong learning employment and training programs.