page 1

Needful Provision, Inc. (NPI) Grant Application for CFDA 14.250, Rural Housing and Economic Development (RHED) Program (Applications due: 13 June 2007)

------

The following application for $297,000.00 (for a 36-month RHED project) is made by

Needful Provision, Inc. (NPI), a 501 (c)(3) charity founded on 12 June 1995, dedicated

primarily to rural economic development and self-help housing for impoverished and/or

disadvantaged rural populations. (EIN: 85-0433956) (DUNS: 07-853-9710)

Contact: David A. Nuttle, President; NPI; P.O. Box 1595, Tahlequah, OK 74465 USA

Tel. 1-918-868-5710 Fax 1-918-868-5709 Email:

------

Responses to Rating Factors are given in the last section of this NPI Proposal, the information presented before that section (and as follows) is a discussion of those factors, and other factors.

------

Project Title: “Green, Self-Help Housing & Entrepreneurship for Rural

Areas (in the Ozarks)”

Project Summary: Needful Provision, Inc. (NPI), will undertake an $877,000.00 effort,

over a 36-month time period, to assist impoverished rural residents of the Ozarks ---to

include refugees, immigrants, minorities, and all rural poor. (Stakeholders, living in rural

“pockets” of less than 2,500 people each, are generally all very low-income.) Subject

assistance will be focused on teaching green self-help housing techniques and related

creative financing, as well as assorted, appropriate microenterprise development to

provide jobs and income while facilitating economic development for target areas (NE

Oklahoma, NW Arkansas, and SW Missouri). A $297,000.00 grant is hereby being

requested from HUD’s Office of Rural Housing & Economic Development. NPI is

providing $580,000.00 cash (from royalty income) as well as $1,470,000.00 of in-kind/

microenterprise technology support. (The total leveraging ratio is: 1 to 6.9.)

page 2

Needs/ Target Population(s): Impoverished individuals/ families living in “pockets”

of extreme rural poverty, in areas of the Ozarks, having populations of less than 2,500

w/ shortages of safe housing --and a general lack of adequate income opportunities. Any

impoverished rural resident of NE Oklahoma, NW Arkansas, and SW Missouri may be

assisted, but a major focus will be on 364 Hmong (Asian) refugee/ immigrant families

generally having a known poverty rate five times the national average (NPI survey data

for 2006 – 2007, and USDA/ ERS income data for contract poultry growers).

NPI’s APPROACHES/ SOLUTIONS

1)Affordable/ Safe Housing Plans: NPI plans to construct a model self-help, low-

cost, “zero net-energy” home to be used in training subject population in constructing

their own homes with the help of creative financing ---as well as USDA/ RD’s Section

502 Mutual Self-Help Housing Loan Program. During construction of this model, a

series of training films will be made to teach related self-help construction, operations,

and maintenance techniques to subject populations (using the appropriate language for

sub-groups such as the Hmong). Subject model will teach and demonstrate: 1) Passive

solar design; 2) Alternative construction methods using straw bale, cordwood, & earth-

block; 3) Attached sunspaces; 4) Solar attics for heating & natural lighting; 5) Solar

hot water & cooking; 6) Alternative energy systems; 7) Energy efficient appliances;

8) Composting toilets; 9) Greywater recycling; 10) Home industries; and 11) Edible

landscaping and home gardens. NPI will work w/ individual stakeholders (project

participants) to facilitate creative financing options --- and provide technical support

during self-help construction of their own homes. (Subject model will also be used to

teach a series of microenterprise opportunities related to green construction industries.)

page 3

2) Rural Economic Development Approach: Once completed, NPI will use the above

said self-help home model as a rural development/ microenterprise incubator to train and

coach subject stakeholders in an assortment of value-added products, farm income

diversification, and rural area microenterprises. NPI already has training models for

aquaculture, aquaponics, algalculture, mushrooms, sustainable crop and livestock

systems, and related innovative microenterprises. (Most stakeholders own small farms,

and are engaged in contract poultry farming to obtain a poverty-level income. The

impoverished rural areas where they live have very few employment opportunities for

supplemental off-farm income.) NPI’s staff ---with support from Langston University

extension specialists--- will provide training, distance education (via training DVDs),

business planning support, and technical assistance. Microloans (directly from NPI, or

from supporting local lenders such as ARVEST Bank) will be used to help start new

stakeholder enterprises. “Target area” economic development occurs by assisting

stakeholders with the objective of making them very successful rural area entrepreneurs.

NPI’s Relevant Organizational Experience: NPI and NPI’s staff have been engaged in

the development of self-help housing, as well as rural economic development, since

1995. The attached NEPW project, for India, provides a good example of how NPI uses

its innovative technologies for successful rural development. In addition, NPI is engaged

in the research, development, demonstration, and teaching of several unique technologies

---such as NPI’s U.S. Patent No. 5,121,708--- designed to support the above said efforts.

NPI’s founder, David A. Nuttle, has undertaken unique self-help housing/ rural economic

page 4

development projects, worldwide, since 1959. NPI’s recent self-help housing efforts

were in Iraq and Indonesia. At present, NPI has rural economic development projects in

Kenya, India, and Mexico, as well as the U.S. (NPI’s QL2 project, for Kenya, is attached

as an example of NPI uses social enterprises to support rural development efforts.)

Qualifications of “Key” Staff: David A. Nuttle, NPI’s founder and President, has a

BS degree in agriculture, and nearly five decades of experience, worldwide, in self-help

housing and entrepreneurship projects for rural populations (as noted above). Nuttle also

has several inventions created to support these efforts. For two years, in Laos, and three

years, in the U.S., he has previously undertaken such work with Hmong refugees ---the

primary stakeholders in this project. Charles A. Gourd, Ph.D., is a specialist in unique

technology transfer to poor tribal and rural populations. Dr. Gourd has two years prior

work with Hmong refugees, and he has been a consultant to the United Nations on rural

development issues related to poor tribal and rural populations, worldwide. Karen M.

Lees, NPI’s Director of Training, has an MA degree in Special Education, and three

decades of quality experience in planning, writing, delivering, and managing training/

education programs for minority youth and adults. Ms. Lees has three years experience

in working with Hmong refugees in the Ozarks. Tou Vang, NPI’s Hmong-English

language interpreter/ translator, assists with instruction and helps to prepare training

DVDs. Mr. Vang is currently in the process of completing a business degree, but will

return to NPI before the start of subject project. (Resumes are attached.)

------

N.B. Participating Langston University personnel, and their resumes, are shown with

Langston University’s letter approving support for subject project.

page 5

Analysis of the Problem(s): Urban areas of the Ozarks are generally prosperous with

few people living at, or below, the poverty level. These urban areas also have many

job opportunities for persons with the qualifications desired. The above described target

group(s) live in somewhat isolated and impoverished rural “pockets” of the Ozarks. In

nearly all cases, these stakeholders (project participants) lack the education, valid work

experience, and English language skills needed to find work in said urban areas. Thus,

these populations attempt to make a living farming or contract poultry farming. In the

case of the Hmong, they generally paid far too much for farms purchased with support

from USDA/ FSA guaranteed farm loans. In order to justify the inflated farm purchase

prices, lender banks typically inflated farm income data to justify guaranteed farm loans

at the level requested. The Hmong accepted this inflated farm income data because they

had no prior farming experience or agricultural training ---and they therefore incorrectly

believed that they would have sufficient farm income to provide debt service and also pay

basic living expenses.

In actual fact, said Hmong farmers have a poverty level five times the national average.

Public records indicate that 17 of these Hmong farmers have declared some form of

bankruptcy ---and NPI’s survey of stakeholders indicates that another 21 of these Hmong

farmers are planning to declare bankruptcy. USDA/ FSA contributed to said problems by

not requiring the Hmong to have any farming experience (or agricultural training) before

buying farms. Ozark area bankers did not demand that Hmong borrowers have prior

farming experience because they were “fully” protected by FSA’s farm loan guarantees.

Other stakeholders, in subject rural area, have extreme financial problems because

page 6

contract poultry farming seldom provides a living wage ---and most area farmers are so

engaged. According to USDA/ ERS data, over 70 percent of contract poultry farmers

make less than a poverty-level income for the areas in which they reside. Thus, most of

the subject stakeholders have needs similar to Hmong farmers in the Ozarks. NPI’s

proposed project will seek to provide affordable safe housing and improved job/ income

opportunities, for all low-income rural residents in the target area.

Work Plan & Timing: Initial efforts (during the first 8-month period) will be on the

planning, design, engineering, permitting, and construction of a green (zero net-energy),

self-help home model as described under paragraph 1 (one) ---of the above Approaches/

Solutions section. During this same period, stakeholders will be trained in self-help

home construction techniques and related creative financing, as well as creation of green

construction microenterprises (of various sorts). Training DVDs, for self-help housing

will also be made during this period. Planning for the funding and construction of 55

self-help, green homes shall be another activity featured during this time.

During the remaining 28-month period, NPI’s model green (ZNE) home becomes a rural

business/ microenterprise center to train 13 stakeholders per month in customized and

specific entrepreneurial subjects ----and rural microenterprise subjects---- as listed under

papragraph 2 (two) of the above Approaches/ Solutions section. Every trainee who has

the desire to do so, will be assisted in writing business and finance plans. NPI will then

provide technical support, and arrange for microloans to help start the stakeholder

business being planned. For those stakeholders with small farms, there is expected to be

page 7

a focus on value-added enterprise development utilizing existing farm resources. Each of

the new business owners shall be assisted with expansion plans, and encouraged to

provide quality jobs for others in the community. NPI will assist with product

development and marketing to help assure the economic success of these new, rural area

entrepreneurs. As part of the training efforts, NPI shall provide a wide variety of DVDs

With relevant instructional materials to supplement classroom and OJT (on-the-job)

training. NPI will be using its 50-acre, Cherokee County, Oklahoma, training facility and

assorted entrepreneurial training models to assist in this instruction.

Training Details: The total training period is 36-months. There will be 364 total

trainees (stakeholders): 110 each from NE Oklahoma and SW Missouri, and 144 from

NW Arkansas (the Ozarks). All training will take place on NPI’s 50-acre instructional

and OJT (on-the-job) facility in Cherokee County, Oklahoma (in the target-area). The

training staff are as identified herein. Hmong trainees will be nominated by Hmong

America, Inc. (HAI), with final selection being made by NPI’s staff. Over 420 persons,

who are potential stakeholders, are expected to make an application for training. Once

selected, trainees may receive transportation and other essential support if they have no

means of providing this for themselves. Training shall take place in classrooms, via OJT,

by distance learning, in a rural enterprise incubator, and on their farms/ ranches, or in

their places of business (for technical coaching).

During the first 8-months, the 364 trainees will have on-the-job training for self-help

construction of homes. A total of 12 teams, with 30/ 31-men per team, will receive two

page 8

4-hour blocks of instruction/ OJT shifts per week, in each aspect of construction for a

model green (zero net-energy) self-help home. (Instruction/ OJT occurs 16-hours a day,

for 6-days per week.) A total of 20-hours of training includes creative financing and 502

Mutual Self-Help Housing. At the end of the 8-month training period, these teams will

then start their own self-help green homes, and/or assist other Hmong families in self-

help construction of their own homes. The remaining 28-month period will be used to

instruct/ coach/ tutor 13 Hmong per month, and provide OJT, related to development of

entrepreneurship and microenterprise skills needed to become self-employed ---and

thereby provide a high level of income. (If trainees elect to work for others, rather than

to start their own enterprise, they will have sufficient new skills to earn a good income

from an hourly wage.) NPI will assist trainees in writing business plans, and in actually

starting new enterprises using microloans from NPI or cooperating local banks such as

ARVEST. In addition, NPI will provide direct technical support to help these trainees be

successful rural entrepreneurs. Some of the microenterprises to be started may include:

1)Aquaponics for organic food coops and school lunch programs; 2) Aquaculture

for local Asian supermarkets as well as the above outlets; 3) Algalculture for food/ feed

supplements, and algal-biodiesel; 4) Mushrooms for Asian supermarkets; 5) Humane,

outdoor, organic, livestock production/ products for local organic food coops; 6) Unique,

organic crops like Grain Amaranth; 7) Outdoor poultry production; 8) Cottage industrial

items; and 9) Various value-added products based on the above, or derived from current

production.

Management Plan: MBO (management-by-objective) techniques will be used, with an

page 9

individual management effort for each aspect of the work plan. Benchmarks and specific

performance indicators will be used, and adjustments will be made to the work plan as

may be necessary. Accounting, audit, reporting, and other management techniques will

be as required by HUD. (Specific benchmarks and performance indicators are as detailed

in the attached Logic Model.)

HUD Policy Priorities Addressed: a) Provides increased home ownership for low-

income rural residents; b) Improves a U.S. rural community; c) Includes accessible

design features for homes; d) Facilitates HUD program implementation via a rural area

charity; e) Will help to end chronic, target-area homelessness within 10-years; f)

Removes some barriers to affordable housing; and g) Promotes energy efficiency and

the “Energy Star” effort.

Coordination w/ Others: NPI is a member of the Rural Refugee Initiative (RRI), and

coordinates all efforts to assist rural area refugees/ immigrants with that the many

members of that organization ---to include HHS/ ACF/ ORR (Office of Refugee Relief).

In addition, NPI coordinates with stakeholder groups like Hmong America, Inc., and

groups dedicated to assisting the rural poor; e.g. Rural Advancement Foundation Intl.

Soundness of Approach: Within the next few months, an estimated 38 stakeholder

families will have lost their homes along with their farms and income to foreclosures/

bankruptcies. The $297,000.00 grant requested is obviously inadequate to directly

provide the number of homes and new jobs needed for the known demand, not to even

page 10

mention the anticipated demand. By teaching self-help housing techniques, along with

creative financing, subject families can provide their own safe, affordable housing. At

the same time, teaching of microenterprise development techniques will allow subject

populations to become self-employed, and provide their own income at above poverty

levels. Hmong farmers who have survived financially will be asked to provide two

acres of land to Hmong individuals/ families who have lost everything. Hmong customs

would encourage such mutual support efforts, and local zoning would not prevent these

land transfers. This land would then be used for the self-help housing and microenterprise

projects. The two-acres would be paid for in labor, or other support, for the donor

(typically another stakeholder farmer). In many cases, donors may want to become part

of new microenterprises so they can soon increase their own income. As a part of this

project, NPI will be creating innovative microlending programs to help microenterprises

start after planning is completed.

Output Measurements: The subject project will provide--- a) 1 (one) green, self-help,

model/ training home; b) 36 new, green, self-help homes for low-income populations; c)

Not less than 364 stakeholders/ participants trained; d) 70 or more unique/ innovative

microenterprises created to provide self-employment for the poor; plus d) An estimated

210 new jobs created for economic development in an impoverished rural area. (A

predicted 97 percent of the participants trained (353 stakeholders) will find jobs, or

become self-employed.) Participants will more than triple their typical incomes, and

family savings are expected to more than double ---just from energy savings alone.

Target area organizational resources shall show a dramatic increase as a result of adding

page 11

NPI’s microenterprise incubator, and related microlending activity.

Leveraging Resources: The subject project is made possible because NPI has already

expended of $1.1 million on related technology development, plus another $370,000.00